State Bank of Pakistan / Fraud in Bancassurance

State Bank of Pakistan Reviews & Complaints

By: Ghazala tabbasum

Contact information:
State Bank of Pakistan
Kotla Arab Ali Khan, Gujrat.

I have account with MCB Bank Kotla Arab Ali Khan, where the Bank officials have posted Banca officer who fraudulantly motivate customers to purchase Bancassurance policies by giving attractive benefits. He booked my Banca for Rs.300000/- 27-03-2012, policy no.MIG-400010254.

He promised that in case of need I can take full amount of the premium paid after three years. All Bank staff also said the same words. In the year 2012 all banks commit the same words to the Banca customers, which can be inquired by SBP.

I have paid yearly premium for three years accordingly, Total Rs.900000/- but when I demanded my money back as per my urgent need, the Bank is ready to pay only Rs.627844/- against payment of Rs.900000/-.

Please ask MCB to pay my full amount rs.900000/-.

Ghazala tabbasum
03006252053

46 thoughts on “State Bank of Pakistan / Fraud in Bancassurance”

  1. all banassurance and insurance companies are minting money through fraud, so avoid them they are fraudsters at large.

    1. Ali Shoaib Mughal

      to confirm that bancassurance is fraud and based on misrepresentation, cheating and mis-selling, plz consult on these numbers.
      FIO Islamabad office. 051-9320258
      FIO Yasin Tahir Sahib. 0300-4400270
      FIO (PA Salman) 0308-8310601
      In short its all fraud and deception with customers, so confirm your case fro above numbers.
      Thanks

    2. MUJAHID ABBAS

      OK BEWARE ALL CITIZENS OF PAKISTAN.
      SBP AND SECP HAS TAKEN STRICT ACTIONS AGAINST MIS-REPRESENTATION AND DECEPTION BY BANKERS IN THE NAME OF SAVING PLANS. SO ALL POLICIES TAKEN BY BANKS ARE CANCELLED AND FAKE. FOR HELP PLZ CONTACT FIO PAKISTAN FOR REIMBURSEMENT OF YOUR MONEY. BANCASSURANCE IS A FRAUD AND CHEATING IN THE EYES OF SBP AND SECP.
      GOD BLESS YOU

    3. Salman Khan Mughal

      If your bank file has font size lower than 10, if it is lacking basic fact sheet and need analysis form, if it is forged at some place, if it has wrong information inserted by agent in it, if any one item is exposed in your file work, then remember YOU are victim of FRAUD and DECEPTION, cheating and MIS-REPRESENTATION, Bank official or Agent has played fraud with YOU to get commission. then contact SECP or FIO Federal Insurance Ombudsman (FIO) Karachi Or ISLAMABAD.
      Even SBP has condemned this kind of bank trade paractice and declared it as fraud. UBL and Askari Bank ARE Main cheaters and fraud specialist. so be careful. God bless YOU ALL.

  2. all bancassurance policies are based on fraud, misrepresentation, deception, lies, and misleading tactics. so avoid them. they cheat innocent people openly and play fraud with them. so be careful.

  3. Why SBP is silent? Are they supervising the fraudulent business called bancassurance against bribes? A bank is selling 3rd party product without taking responsibility but getting commission against each selling! We are told that bank is securing our investment but bank don’t take responsibility in reality. Even if customer need any assistance then bank refer customer to company office and the persons over there reply that please go to your bank as they took commission!
    What are key responsibilities of bank?
    Whar is the purpose of bank?
    Banks are supposed to be banca sellers only?
    Banca business has any role in financial trade or finance business?
    Please tahis mater to higher level.

  4. Dear all readers I want to tell U that all bancassurance schemes are based on fraud and lies. bankers cheat innocent customers and and play deception with them, so dont trust on them and never invest in these schemes because they are all frauds. Even SBP has warned them but frudsters dont stop by looting innocent customers. Recently SBP has issued circular to banks for their mischivious acts of fraud and misrepresentation and lies.But still they play havoc with customers trust and grab money from their pockects. efulife, jubilee and other companies through banking channel are palying fraud with customers. so be care ful and never trust on there liars and fraudsters.

  5. Supreme court of Pakistan and NAB must take action against these fraudulent schemes they are cheaters and fradsters. so be careful . dont trust on bankers and their tactics.

  6. Frauds, cheating and misrepresentation by bank officers are rampant in pakistan. even high qualified and responsiible bank officers are involved in these nefarious activities. they cheat innocent clients by their treachrous tactics. people fall victim and lose their hard earned money in the hands of these looters and fraudsters. so be carefull.

  7. Frauds, cheating and misrepresentation by bank officers are rampant in pakistan. even high qualified and responsiible bank officers are involved in these nefarious activities. they cheat innocent clients by their treachrous tactics. people fall victim and lose their hard earned money in the hands of these looters and fraudsters. so be carefull.

  8. Frauds and miss-representation in Banks
    Frauds, cheating and misrepresentation, false communication and misleading tricks by bank officers are rampant in banking sector of Pakistan. Even high qualified and responsible bank officers are involved in these nefarious activities. They cheat innocent clients by their treacherous tricks. Honest and simple citizens fall victims of these unscrupulous elements and lose their hard earned money at the name of saving plans.
    I want to draw people,s attention through your esteemed daily newspaper about cheating, fraud and misrepresentation of these notorious fraudsters.
    They make fool of innocent people and guide in the misleading manners just to get commission from the companies. They are selling insurance policies by using Bank names, LOGO and stamps. They cheat people and give wrong information to clients and customers just to get commission from the third party. Even State Bank of Pakistan has warned these bank officials not to indulge themselves in these unlawful and unfair business practices. But these unscrupulous elements have paid no attention to SBP circulars and warnings.
    Bank assurance is a fraud and based on telling lies and misleading sales practices. These officials conceal the real facts of product they are selling. They use illegal paperwork. Very important papers used for insurance, like need analysis form, basic fact sheet acknowledgement are lacking in the customer file. In most cases forgery (false and fake signature are affixed on bank documents) just to grab money in the form of commission from companies are promoting. They sell third party products under the cover of banking products and saving plans.
    I strongly recommend government to stop insurance by banks, because this is all fraud and misrepresentation. Dr Khawar Jameel Federal Insurance Ombudsman (FIO) Pakistan should take strict notice of this issue seriously and cancel all bank assurance policies. He should pass an order to cancel all bank assurance policies to discourage bank assurance because this is all fraud and cheating. Public must be vigilant and active in detection of these unlawful business practice.

    1. I agree hundred percent with Mr Altaf Ali that BANK Insurance policies are fake and totally fraud and cheating with the innocent public. be vigilant.

    2. Shakeel Anjam

      Askari Bank and UBL are leading banks in committing frauds and misrepresentation with innocent clients. All policies taken from these banks are fraud and cheating. Govt must punish concerned officials and SBP must take stern actions.

  9. dear all frauds victims
    I want to draw your attention regarding bank frauds with innocent customers. If U are victim of this kind of fraud then visit to FIO Office nearest to U. Federal Insurance Ombudsman (FIO). FIO offices are located in karachi, lahore islamabad, peshawar and multan. i have islamabad office numbers i am sharing to U all . plz consult your issue to them they will defenitly solve your problems because it is their duty to solve this kind of fraud problems.
    YASIN TAHIR SAHIB. FIO Islamabad mobile number. 03004400270
    PTCL no. 051-9320258
    FIO PA no. 0308-8310601(SALMAN)
    insurance through banks are all frauds and misrepresentation.cheating and deception.

  10. All concerned people
    plz be attentive. All bancassurance policies are fake and fraud. agents are telling lies at large. All such transactions are based on misreprepresentation and deception. for this purpose govt of pakistan has established a new institution called Federal Insurance Ombudsman which deal all this type of frauds and cancell such contracts. it has SBP full support. so if U are victim of this kind of fraud plz contact to Federal Insurance Ombudsman (FIO). FIO Islamabad numbers are 051-9320258, Yasin Tahir sb FIO ISLAMABAD. 03004400270,
    FIO PA Salman mobile. 0308-8310601
    these officials will guide U BEST.

  11. Askari bank and UBL are leading banks in playing frauds and deception with innocent people .so be carefull.
    These banks are cheating people. Go to FIO yasin tahir sahib FIO Isamabad. he will assist U well.

  12. KHAJA IMAM ALI

    ASKRI and UBL Banks are leading banks in making frauds with innocent customers. they are fraudsters.
    so be carefull.

  13. QAMAR ABBAS KHAN

    If U have insurance policy of EFU and Jublee or any other company, then U must check your insurance document file. If U fined that BASIC FACT SHHET and NEED ANALYSIS FORM are missing in it then YOU R 100% victim of this fraud . if you are victim then contact FIO FEDERAL INSURANCE OMBUDSMAN (FIO). he will help you in reimbusment of money.

  14. Nazar Abbas Shah

    ALL BANCASSURANCE IS FRAUD AND DECEPTION.
    If you have insurance policy then check out your insurance file. If you find it has missing folllowing documents, then you are a victim of bank officials fraud.
    check it that your file consists need analysis form.
    check out that it contains basic fact sheet.
    check out that it has acknowledgement letter.
    if even one item is missing in your file then you are victim of frauds.
    then go to FIO Pakistan.

    1. plz add that on file documents there is written saving plan instead of insurance policy. this is also illegal.

  15. Askari Bank and UBL both banks are misleading people. just avoid them. They have 95% fraud based insurance polcies. So be careful.

  16. SECP initiates action against mis-selling in bancassurance
    By RECORDER REPORT on December 21, 2019
    The Securities and Exchange Commission of Pakistan (SECP), to address the issue of mis-selling of insurance policies through bancassurance agents, has initiated actions against all such companies.

    The SECP has observed large number of complaints against insurance companies regarding insurance products sold through bancassurance distribution channel. The bancassurance agents misled the policyholders by selling insurance policies in disguise of highly profitable investments without disclosing that the company will deduct front-end commission and other charges.

    In this respect, the Insurance Division of the SECP has penalized an insurance company for violating the respective regulatory framework. The SECP, while concluding its proceedings directed the insurance company to refund full amount of premium to 19 policyholders. Moreover, the insurance company was also directed to claw back the commission paid to bank(s) in these cases.

    To eliminate any element of mis-selling, SECP also instructed the company to bring transparency in the sales process and provide maximum disclosure and information about the insurance products to the policyholders. The company was also asked to warrant compliance of bancassurance staff with prescribed code of conduct.

    SECP, besides having the mandate for development of insurance sector, is also responsible for protecting the interests of the policyholders. Therefore, strict action would be taken against the insurance companies indulged in mis-selling. Moreover, tightening of Bancassurance Regulations is also being considered to curtail the issue of mis-selling.-
    Even SECP and SBP admit and acknowledge this kind of fraud and miss selling. so be carefull.

  17. SECP initiates action against mis-selling in bancassurance
    By RECORDER REPORT on December 21, 2019
    The Securities and Exchange Commission of Pakistan (SECP), to address the issue of mis-selling of insurance policies through bancassurance agents, has initiated actions against all such companies.

    The SECP has observed large number of complaints against insurance companies regarding insurance products sold through bancassurance distribution channel. The bancassurance agents misled the policyholders by selling insurance policies in disguise of highly profitable investments without disclosing that the company will deduct front-end commission and other charges.

    In this respect, the Insurance Division of the SECP has penalized an insurance company for violating the respective regulatory framework. The SECP, while concluding its proceedings directed the insurance company to refund full amount of premium to 19 policyholders. Moreover, the insurance company was also directed to claw back the commission paid to bank(s) in these cases.

    To eliminate any element of mis-selling, SECP also instructed the company to bring transparency in the sales process and provide maximum disclosure and information about the insurance products to the policyholders. The company was also asked to warrant compliance of bancassurance staff with prescribed code of conduct.

    SECP, besides having the mandate for development of insurance sector, is also responsible for protecting the interests of the policyholders. Therefore, strict action would be taken against the insurance companies indulged in mis-selling. Moreover, tightening of Bancassurance Regulations is also being considered to curtail the issue of mis-selling.-PR

  18. All bank assurance policies without basic fact shhet and need analysis form are fake and basesd on mis selling. This is quite deception and cheating. plz be carefull.

  19. Mumtaz Joya

    plz check your insurance document file given by bank or agent. if it is lacking basic fact sheet and need analysis form, then it it is fake and fraud. if you find these missing documents in your file then contact FIO PAKISTAN.
    FEDERAL INSURANCE OMBUDSMAN KARACHI OR ISLAMABAD.
    Remember all insurance policies taken by banks are mis-sold and based on mis-representation. this is illegal and unethical.

  20. Ali Imran Qazi

    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 a market for these products.

    It is high time this practice was ended because the manner in which these products have been pushed onto customers amounts to a scam. Customers who have already been taken in by a sales pitch for a product need to be made aware that they are entitled to a full refund of the money that they have placed. It is important to push awareness of this basic fact because banks and insurance companies do their best to conceal it from their customers. The SECP should open a portal where customers who feel they were misled into buying one of these products can register their complaint and seek the regulator’s help in getting a full refund of their money. There is nothing wrong with financial institutions partnering to offer novel products for their customers, but tighter regulations are needed to ensure that such offerings carry genuine benefits for the customer, that misleading sales practices are not used to push them, and that the terms are clearly laid out in the product brochures rather than contained in the fine print of the contracts.

  21. two documents are very necessary to confirm that insurance policy you hold is right. if your insurance file lacks these two documents, than this is fake and fraud based policy. these documents are Basic Fact Sheet and Need Analysis Form

    1. THIS IS ALL FRAUD, ALL SCAM, ALL DECEPTION, ALL MIS-REPRESENTATION. EVEN SBP AND SECP ACKNOWLEDGES IT.

  22. Khawar Abbas

    Remember that 2 documents are essential for valid insurance policy. These are Basic Fact Sheet and Need Analysis Form. If U have policy and have no these 2 documents attached with your file. then this fraud and mis selling and deception. then go to FIO.

    1. THIS KIND OF FRAUD AND SCAM IS ACKNOWLEGED BY STATE BANK AND SECP . SBP AND SECP CONDEMNS THIS KIND OF FRAUD AND SCAM. SO BE VIGILANT.

  23. A touchstone to confirm that policy is original or fake. two things to remember, one Basic Fact Sheet and othe Need Analysis Form. If you see one of them is missing, then feel it is fraud, scam or deception.

    1. Owais Ghani

      misleading sales practice, deceptive and unethical conduct of bankers and misrepresentation in dealing with customers are hallmarks of bankers. UBL and ASKARI bank are top looters and fraudsters, so be careful.

  24. very brief and short sentence about bancassurance is this, All bancassurance policies are based on mis-selling and misrepresentation.

  25. Mis-selling and mis-representation in banking is considered fraud in tansactions, So bancassrance is fraud and fake and deception. very simple its cheating.

  26. Maliha Bibi

    Now SECP and SBP has banned bancassurance dute high rise cases in this field. So dont fall victim of these fraudsters, cheaters and rogues. they deceive and cheat innocent people.

  27. in short and very precise manners, bancassurance taken from any bank like UBL and Askari Bank is mi-represented, deceptive, mis-sold and fraud.

    1. SHAHID AMJAD

      Who is responsible for this all? It means that even SBP and SECP are powerless to counter such unscrupolous elements. very sad.

  28. Bancassurance is an other name of Mis-selling, mis-representation, fraud. deception, cheating, unethical selling and illegal in the eyes of SBP and SECP. Bankers are doing this unprofessional practice just to get commission. they loot innocent customers. so dont believe in them.

    1. mis-selling, misreprepresentaion, forgery, cheating, unethical behaviour, giving false information about product: these all come under catagory of FRAUD in transaction BY rules made by SBP and SECP. So BANCASSURANCE IS ALL ABOUT THIS CATAGORY. NOW you just think and decide wheather it is fraud or truth.

  29. Jahangir Khan

    I am banker and I confess such kind of crime and fraud in banks. Bancassurance is another name of fraud. so be vigilant.

  30. The Securities and Exchange Commission of Pakistan (SECP) directed the Pak-Qatar Family Takaful and its CEO to pay Rs800,000 and Rs200,000, respectively, in fines to the regulator within 30 days for running advertisements containing “deceptive and/or misleading information” through one of its agents.

    BankIslami Pakistan published an advertisement in Dawn on October 27 last year that promoted three Takaful products of Pak-Qatar Family Takaful.
    However, the name of Pak-Qatar Family Takaful was not printed anywhere in the advertisement. According to the SECP order passed on February 26, the advertisement did not suggest any involvement of Pak-Qatar Family Takaful with the products; and therefore, it was “deceptive/misleading for the public at large.”

    BankIslami acted as a corporate agent of Pak-Qatar Family Takaful and, according to Bancassurance Guidelines, 2010, any sales-related material must be approved by both the insurer and the bank. Insurance Ordinance, 2000, holds the insurer liable for every act and/or omission of the agent of that particular insurer.

    During the hearing proceedings held on January 28, it was mentioned that the wording, “Save Rs15,000 per month and get a coverage of up to Rs5,000,000” gave the impression that if an accountholder of BankIslami saved Rs15,000 per month in his account then he will automatically be entitled to a coverage of Rs5 million, which is “deceptive and misleading.”

    In its written response to the SECP on February 4, Pak-Qatar Family Takaful maintained that the advertisement was actually an extract from a publicity brochure. BankIslami published the same under the impression that it was already approved by the SECP, the Islamic insurer said in its response. The publication of the said advertisement was stopped, it added, while BankIslami published a new advertisement as per the SECP guidelines to remove any ambiguity arising out of the previous one.
    The total amount of contribution underwritten by Pak-Qatar Family Takaful through BankIslami between October 28, 2012, and January 27 was Rs10.3 million, as it sold 149 Takaful policies.

    A spokesperson for Pak-Qatar Family Takaful declined to speak to The Express Tribune for this story.

    As opposed to seven conventional insurance companies, only two family Takaful companies currently operate in Pakistan.

    Total gross premiums of Takaful companies in 2011 were Rs3.3 billion, which was only 2.8% of the gross premiums of conventional insurance companies in the same year.

    Published in The Express Tribune, March 2nd, 2013.

  31. Shamil Khan

    Fraud is a wide range of practices from a salesperson perspective, it could be hiding facts or misleading information, but it’s the responsibility of the buyer to read the offer or the policy before signing and make sure he interprets them properly.

    In the western world for example, insurance policies are lengthy, and the amount of definitions and explanations is higher than MENA, because insurance policies by law are required to be readable by a 3rd grader (a kid on the age of 9), thus enabling everyone to understand the policy. In MENA the wording of insurance policies and terminology used, only understandable by insurance workers or by experience, and we always find a client or policyholder that is not in fully awareness of the policy terms and conditions.

  32. The Securities and Exchange Commission of Pakistan (SECP) has taken note of malpractices in selling of insurance policies through bancassurance agents, initiating action against all companies involved in their sales.

    The SECP had received a large number of complaints regarding insurance products sold through bancassurance distribution channel.

    Bancassurance combines savings with insurance to offer a unified product for both services. Bank branches have been aggressively marketing these products to their customers for a number of years now.

    The SECP has found that bancassurance agents misled the policyholders by selling insurance policies in disguise of highly profitable investments without disclosing that the company will deduct frontend commission and other charges.

    Many customers find that they have not been fully informed of all the charges that are applicable when they purchase the product, and the fine print in the agreement carries conditions that severely constrains the payouts that the customers have been led to believe they will be entitled to.

    The bancassurance market works by bringing banks and insurance companies together to form a unified product. The details can change from one bank to another, but all insurance companies have now built partnerships with multiple banks to develop offerings such as these and mobilised their branch staff to aggressively market and sell these products.

    Given the complexity of the product and the vague nature of the sales pitch, customers are easily misled into thinking they are buying into a secure and high yielding savings product that will also provide them with some sort of insurance cover. But in reality, customers learn that after deductions and qualifications are applied, the returns are far smaller and the insurance cover much narrower than what they had been led to believe.

    In the wake of several complaints, the Insurance Division of the SECP has penalised an insurance company for violating regulatory injunctions.

    The regulator, while concluding its proceedings, directed the insurance company to refund full amount of premium to 19 policyholders. Moreover, the insurance company was also directed to claw back the commission paid to banks in these cases.

    To eliminate any element of mis-selling, the SECP also instructed the company to bring transparency in the sales process and provide maximum disclosure and information about the insurance products to the policyholders. The company was also asked to warrant compliance of bancassurance staff with prescribed code of conduct.

    In a statement, the SECP has called upon the aggrieved citizens to register their complaints against any insurance company at the SECP website as the corporate sector regulator does not only have the mandate to develop insurance sector but is also responsible for protecting the interests of the policyholders.

    Therefore, strict action would be taken against the insurance companies indulged in mis-selling, the SECP warned while a tightening of Bancassurance Regulations is also being considered to curtail the issue of mis-selling.

    Published in Dawn, December 21st, 2019

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