Surrender disputes are on the “black list” and how to avoid pitfalls when buying insurance[Consumers should fully understand the long-term nature of insurance payment and have doubts and should protect their rights through formal channels]
According to the latest report from the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission, in the first quarter of 2022, the China Banking and Insurance Regulatory Commission and its local offices received and forwarded 26,545 insurance consumer complaints involving insurance companies. It is worth noting that the China Banking and Insurance Regulatory Commission disclosed 4,729 surrender disputes for the first time, accounting for 27.54% of the 17,172 complaints from personal insurance companies, more than 1/4. A reporter from Beijing Youth Daily searched for the keyword “surrender of insurance” on a complaint platform, and there were more than 14,000 complaints, involving all kinds of complaints about stepping on the “pit” and wanting to surrender. Song Zhanjun, deputy secretary-general of the China Insurance Research Institute of Beijing Technology and Business University, said that when the insured has overestimated the value of cash, it is easy to have disputes caused by the unexpected surrender amount.
Surrender amount that does not meet expectations may lead to disputes
Song Zhanjun, deputy secretary general of the China Insurance Research Institute of Beijing Technology and Business University, said in an interview with a reporter from Beijing Youth Daily that after the establishment of the insurance contract, the insurance company will assume the insurance liability as agreed. During and outside the hesitation period, the insurance company has assumed the risk and has the right to charge the corresponding premium. During the hesitation period, the insurance can be fully surrendered, but the insurance company has transferred part of its rights, which is actually giving consumers a certain stage of benefits. Therefore, after the hesitation period, the insurance company will not be able to refund the full amount, but will deduct the insurance liability assumed in the previous period.
How to avoid stepping on the “pit” when buying insurance? Song Zhanjun believes that, first of all, consumers should fully understand the long-term nature of insurance payment, and surrender of insurance may lead to losses. Once the liquidity is temporarily insufficient, the policy can be maintained as effective as possible by means of policy loans, negotiating and adjusting the insurance amount, etc. After the contract is concluded, the insured can check the cash value at the first time. If he does not recognize the benefits of the policy, he will surrender the policy in time within the hesitation period.
Regarding the complaints of “surrender disputes”, Song Zhanjun said: “It may be related to the fact that the insured’s income has declined in recent years, and some insured people have to refund fees. When the insured person overestimates the value of cash, it is easy to Disputes caused by the amount of surrender not meeting expectations. The newly developed insurance products in recent years have a short duration, and the cash value of surrender will generally exceed the accumulated premiums after five years. There should be fewer disputes over new products.”
Do you want to retreat when stepping on the “pit” and how?
Insurance surrender only refunds the cash value, which may be far less than the accumulated premiums paid, and the guarantee is not yet available, which is very uneconomical. Do you want to refund if you buy insurance and step on the “pit”? How to withdraw?
A senior insurance practitioner said that there are two situations to look at. If it is long-term life insurance, the payment period is 15 to 20 years. If the product is found to be cost-effective in the first few years of purchase, a suitable new product has been found, and the loss will be surrendered. It is not too big, and you can directly surrender the insurance and switch to a new product. However, it is recommended to insure the new product first, and wait for the new product to pass the waiting period, and then return the old one, because the general waiting period of the insurance product is only the refund of the premium, and no claim is allowed.
If the policy is not cost-effective, but it is close to or has been paid in full, and the cash value at this time is close to or exceeds the premium paid, then continue to hold it, and it is even more uneconomical to surrender the policy at this time.
In addition, there is another situation, if you are satisfied with the content of the insurance, but you are only in temporary financial distress and the pressure to renew the insurance temporarily is high, you can choose the cash value of the surrender and the amount of insurance in exchange for the reduced amount. If the amount of insurance is still considerable, May wish to continue to protect, their own economic situation is not good, to avoid worse.
What should I do if I really need to protect my rights after purchasing an insurance product? “You can directly negotiate with financial institutions to resolve it. If the negotiation fails, you can resolve it through an industry dispute mediation organization, or report it to the financial supervision department, or file a lawsuit in the people’s court.” The relevant person in charge of the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission suggested that consumers should If you have any doubts about financial products or services, you should make reasonable appeals through formal channels or use legal weapons to protect your own rights and interests. Do not believe in false promises such as “agent surrender” and “agent rights protection”, and refuse to participate in activities that violate contractual agreements, provide false information, or fabricate facts. Malicious complaints.
Consumers should carefully understand the product and service content before purchasing insurance, and choose the product that suits them. If they want to withdraw their insurance, they should choose regular channels. First, call the customer service hotline of the commercial insurance insured by the insured or go to the customer service center of the local insurance company to confirm whether the surrender conditions are met, and then surrender the insurance as required. Under normal circumstances, the premium can only be fully refunded if the policy is surrendered within the hesitation period or if the policy is surrendered without the signature of the person.
remind
Be vigilant about “agent surrender”
“Someone called me and said that they can help me get a full refund of a life insurance policy that is about to expire. It is more cost-effective to buy financial management. They asked me to go to their office to talk in detail, and they promised to send a carton of eggs.” A resident of Xicheng District, Beijing Ms. Yu told the Beiqing Daily reporter that she did feel that the interest rate of the life insurance purchased was not ideal before, and the other party had to provide the ID number and bank card number.
It has been confirmed by many parties that after surrender, some criminals will induce consumers to “retire old and buy new”, buy so-called “high-yield” wealth management products, and promote P2P products, which may bring loss of principal to policyholders. It even intercepts and seizes the surrender funds of consumers, and hides the risk of fundraising fraud.
This group of articles / reporter Lin Lishuang