Bancassurance scams.

THE SECP has done the right thing by starting an inquiry into the aggressive selling of bancassurance products. For too many years, banks have been misleading the people into buying these products that are hybrids of insurance and savings instruments, with the promise of large returns and insurance cover as well. The hybrid products come in various packages, sometimes for children's education, sometimes as a retirement plan, etc. They involve a partnership between insurance companies and banks, making it easy for both to evade responsibility once the client invariably discovers that the product is not really what it was made out to be during the sales process. Banks have set high targets for each branch for the sale of these products, and the staff in these branches can get aggressive in trying to close the deal, sometimes even resorting to emotional blackmail or subtle 'threats'. Sales practices that are clearly misleading have been used by sales staff to get customers to sign the forms needed to apply for these products. Typically, the sales staff will target older clients who are willing to trust the brand name of the bank they are dealing with. In many cases, the trust that customers place in their financial institution is manipulated to build...