Are senior citizens in India being targeted by banks for insurance mis-selling?

Yes, multiple reports indicate that senior citizens are increasingly targeted by banks for mis-selling insurance and investment products unsuitable for their needs.

Why do banks target senior citizens for insurance sales?

Banks target seniors due to their trust in financial institutions, frequent branch visits, and often larger savings balances, coupled with sales incentives for intermediaries.

What are common mis-selling tactics used against elderly customers in India?

Common tactics include presenting unsuitable insurance as 'FD-like' or 'guaranteed,' downplaying risks, and relying on verbal assurances over detailed product explanations.

Home / Business and Economy / India's Seniors: Banks' New Mis-selling Target

India's Seniors: Banks' New Mis-selling Target

14 Jan

•

Summary

Senior citizens are targeted for unsuitable insurance products.
Banks exploit trust and frequent visits for sales.
High commissions drive aggressive mis-selling practices.

India's Seniors: Banks' New Mis-selling Target

Generations of Indian senior citizens have relied on banks for the security of their savings, viewing fixed deposits and pension accounts as symbols of stability. However, this trust is increasingly being exploited as they become prime targets for mis-sold insurance and investment products. Banks and intermediaries often pitch these complex, high-commission items as "safe" or "guaranteed," despite long lock-in periods and poor returns.

Financial institutions capitalize on seniors' frequent branch interactions and their natural trust in bank staff. Many elderly individuals, due to limited digital literacy and a belief in banks acting solely in their best interest, rely heavily on verbal assurances. This vulnerability is amplified by the presence of substantial, often idle, balances in their accounts, making them attractive, low-resistance targets for sales representatives incentivized by high commissions.