Policy maturity date a concern: Council
28 November, 2017, 1:08 pm
Update: 1:08PM THE Consumer Council of Fiji says 100 years maturity date for a policy is a concern considering surrenders and forfeitures comprise a very large share of all life insurance policies terminated.
This was a after group of municipal
workers between the ages of 30 to 55 years signed up for the Bula Life policy
with BSP Life Insurance not knowing that the policy would mature when they
reached 100 years.
Consumer Council of Fiji chief
executive officer Premila Kumar said the insurance agent had only informed the
group of people involved of the benefits of the insurance such as receiving
lump sum payout after five years of consecutive premium payments and the use of
policy as a collateral for loans in their various banks.
said however after numerous premium payments and receipt of their original
policy document, the workers learnt that maturity dates for their respective
policy were set to expire when they turned a 100 years and the policy could not
be used to obtain loan.
piece of information was not disclosed upfront when the insurance agent made
the presentation,” she said.
to the latest World Health Organization data published in 2015, Fiji’s life
expectancy is 69.9 years.
“Our experience with handling
complaints against agents, has shown that some agents are not transparent in
their dealings with consumers,” said Ms Kumar.
“This practice denies consumers the
right to full disclosure and many blindly enter into signing up for policies
they may not purchase if they were fully informed in the first place.”