SBI Insurance Policy: Insurance cannot be sold under false pretenses, SBI has warned the employees on the warning of the Ministry of Finance – mssewb.org

SBI Insurance Policy: ‘Stop selling insurance unethically!’, the Union Finance Ministry recently warned government banks. The number of complaints of unethical, sometimes coercive selling of insurance has increased alarmingly across the country, the finance ministry said. The warning was given by the finance ministry to stop this trend.

In view of which the State Bank of India (SBI) has instructed all the field officers. In their written note, SBI authorities have clearly stated that insurance will be sold to customers only on the basis of need. No coercion can be done with this. All Chief Managers have also been directed to keep a strict vigil on any deviation from this directive.

The note written by SBI said that they are confident that insurance policies are sold in all circles in accordance with the rules. But even then, unethical, coercive emphasis is being placed on insurance that cannot be sold to consumers. It is also worth reminding, the bank has a zero-tolerance policy in this regard.

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All branch banks have been directed by SBI to ensure that insurance is sold only on the basis of customer needs. Along with this, it has been directed to ensure that all the criteria of ‘Assessment of Suitability and Appropriateness Framework’ (ASAF) are followed and all activities related to insurance sales are done under 100% KYC compliant accounts.
Incidentally, a few days ago, all government banks were informed by the ‘Department of Financial Services’ (DFS) under the Ministry of Finance, that the incidence of forced insurance sales is increasing in the country. The number of complaints about it is also increasing.

The DFS said in a related letter that the number of complaints filed in the recent past about how banks and insurance companies often deceive and misrepresent customers in order to sell insurance has increased. Even, there have been allegations that insurance policies have been misled and sold to senior citizens above 75 years of age in tier-2 and tier-3 cities.

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Generally, this insurance sales process starts when a customer applies for a loan or term deposit. Consumers continue to be misled in various ways.