Another scam has hit the market. This time in the insurance industry again. It is like...AGAIN??
It is not surprising that in my first post in IMSavvy, I decided to write about whether one can trust your financial planner. I wrote that post because I cracked my head hard to think of a posting that would truly be timeless in a certain way. And I have been proven right in a certain sense. There are definitely conflicts of interests in the financial advisory business where the salary model is that of a sales business (i.e. commission based). A lot of unethical people lurk in the insurance business where the entry into business is easy and the rewards are high.
No matter how hard you try to argue that there is no conflict of interest, this conflict of interest will exist.
But I guess in the AIA agent's case, this has been brought to a whole new level. Selling non-existent insurance products! Who is to blame? Surely not AIA. Which insurance company can actually stop its agent from selling non-existent products? This is just an outright scam and the agent involve just lacks the ethics. It could literally happen anywhere and it is just unfortunate that this happened in the insurance industry AGAIN.
So what can the consumer do?
Simple. Just make sure that whatever contract you sign is really legal and is from the insurance company. Letter heads can be faked and so can many other things if the agent is out to cheat your money.
Another way is to not pass hard cash and when in doubt, call the customer service for info (yes, please get the customer service number from the website and not from your "trusted" agent)
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There are a lot of scams going around...even in such a small place like Singapore.
ReplyDeleteI think the MAS has to come up with certain rules and regulations to reduce these kind of scams from happening. Although there are already some type of regulations, it's still not enough to prevent people from being cheated.
This also explains why many people are now skeptical of telemarketing offers, trial offers etc. It's about whether you can trust that person or company.
Dan
Hi FF,
ReplyDeletewatz ur take on the upcoming GLP & MLT IPOs?
I don't do IPOs. Sorry.
ReplyDeleteAnyone even thinking about investing in AIA, should first read this page: www.aiathailand.com ...unbelievable!
ReplyDeleteWhat so unbelievable? Nowadays, scams take the place of all forms. Consumers must beware.
ReplyDeletewow! so unbelievable!
ReplyDeleteAll of you will agree with me when I say that we all want to be financially stable and we don't want to have financial problems anymore. Because whether we like it or not, money is indeed the root cause of evil and people without money may tend to do crimes for them to have one.
ReplyDeleteBut now we can find ways in order for us to be financially independent. In our little town of Indio, insurance companies are the ones trusted by us because they really give us the best insurance policies that suit our lifestyle. Also in insurance Palm Springs where my mother lives, she also got her insurance policy there and it's great also.
Nowadays, people have become more conscious on their daily expenses. They always make sure that their money is being spent on the most important things. But there are still some who splurge their money so bad. That's why they seek help from an insurance broker and be educated on financial freedom. We must be careful also in choosing your agent because scam is everywhere. Here in Indianapolis, agents are reputable and trusted in providing insurance quotes for their clients. I've just went recently here in an Indianapolis life insurance company and have an insurance for me and my family.
ReplyDelete