Insurance buyers advised to be careful before buying policies
Insurance policies are of great use during unexpected circumstances. But some people have faced problems. In the Philippines, many people were traumatized after buying educational policies for their children, but suffered great losses after the companies declared bankruptcy, leaving their investments in disarray.
“I bought three educational policies for my children, but none of them were used. The company went bankrupt and promised to return the money, but not a single penny was returned,” Cyril Mansueto, an insurance policy buyer, told Kuwait Times. He bought the education policy in Kuwait from a Manila-based company in late 1990s. The value of the policies was more than KD 8,000.
Nita, an Indian secretary, also bought a life insurance policy in Kuwait. After being pestered by the agent, she decided to buy a policy. “He visited my office almost every day, and was very persistent. I started paying towards the policy in 2008. He insisted that on my death, my family will receive $50,000. Also, in case of an accident, my expenses will be taken care of. I agreed to pay KD 200 on a quarterly basis for the next 15 years,” Nita said.
However, after losing her job, she could no longer afford to pay regularly. “I had no money to continue my insurance policy, so I stopped after paying for seven years. They said I will get the money back after the cancellation fee is deducted,” she said. “I had signed the contract in Kuwait, but when I cancelled it, I was told to contact Dubai, as it was an international insurance company. Ten days later, I received only KD 1,800 out of around KD 7,000. I was expecting at least 50 percent of what I paid. This was really very disappointing,” she said.
The US-based insurance company in Kuwait explained the rules of the company and how her money shrunk to this meager amount. “She came to the office three times or more, and she knew the rules. Our company will not get a single penny from her investment. The type of insurance she took had a condition that if you surrender the policy, the company will charge her, which is mentioned in the contract. We’ve been in the market for the last 62 years and never had any problems with our customers. We follow the laws of Kuwait and the US - both countries have strict regulations for insurance. I assure you that my company isn’t into any irregular dealings, and people trust us,” the company’s representative told Kuwait Times.
He stressed the buyer understood that her money would be invested in international markets and that if the market investments are down, it would reflect on her claim; which was clearly mentioned in the contract she signed.