Expert Zone

Straight from the Specialists

Can someone force an insurance product on you?


(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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