Disputes Investment-linked Product - The OJK says that if insurers and their customers fail to reach agreement on disputes involving Ulips, it can assist in mediation to resolve the problem. If it is proven that there is a company error in selling insurance products, OJK will ask the company to fully compensate the customer for losses," said Mr Riswinandi, chief executive of the Non-Bank Financial Industry Supervision Department of the OJK.
In addition, OJK also calls for the evaluation and improvement of the marketing model for unit-linked products and stresses the importance of product transparency.
"It is also necessary to ensure that consumers correctly understand the benefits of the product, the costs charged, investment risks, claim procedures, dispute resolution, and the rights and obligations of other policyholders," said Mr Riswinandi. The sales process is to be documented with recordings.
OJK also urged customers to understand the profile and risks of unit-linked products. Taking a tough stance, the regulator plans to blacklist errant insurance agents who violate regulations governing the sale of unit-linked products.
Misselling Investment-linked Product - Customer complaints are mainly related to investment-linked insurance products, largely revolving around mis-selling, the decline in investment returns from Ulips, and difficulty in making claims.
The head of the OJK Consumer Protection Department, Mr Agus Fajri Zam, said, “"Business actors must ensure that agents do not ask consumers to sign blank insurance application forms.”
He points out that there are also some insurance salespersons who lack the certification for selling Ulips and do not understand well the unit-linked products that are marketed to prospective policyholders.
No comments:
Post a Comment