Expert Zone

Straight from the Specialists

Can someone force an insurance product on you?

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Often, you may think you are getting a great deal on an insurance product. Chances are you might not have given this much thought.

Here are some instances where insurance products are bundled and sold to you — some you may like for the sake of convenience and some which you take to avoid further hassles. This practice is called bundling of products.

Case 1
You see some advertisement which promises ‘free insurance’ for your car or ‘insurance for just 1 rupee’ when you buy a car from a dealer. The truth is that neither is the car insurance free nor is it available for a rupee. The dealer gets a healthy commission from the insurance company for the car insurance sold to you and offsets it against a discount on the price of the car which you could have bargained for anyway. Chances are you will get a better deal on the insurance if you do some comparison in the market.

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