Life Insurance Sold by Bank

[keskeseksa]

Has anybody been asked to subscribe to a life insurance when opening a new bank account? It happened to me and the manager became very angry when I declined so I decided to go to another bank. I got a reference from a friend and had to open 2 accounts, one for daily spending with an ATM card, and the other with the required 800,000 baht for immigration.
I signed all the documents and found out later that the manager had snuck a life policy without my knowledge when I was signing the documents to open my two accounts. This life insurance is a huge scam and I can only assume that if the manager (in fact assistant manager) is ready to go to such a deception he/she must get a huge commission.
I am not asking for legal advice as I benefit from free legal council but I am curious to know how many people have been in my situation.
The life insurance is in fact a more than lousy investment scam over a period of 10 or even 20 years and if you miss a payment you lose practically all your investment. There is a small clause that says that if you die, a relative may receive back the money you invested plus a small bonus. This clause makes it legal to call this scam a life insurance policy. People subscribe on the advice of their banker and trust them because the life insurance is issued by a reputable bank.

[caller]

I was offered a credit card with life insurance. I showed the paperwork to the other half and it went in the bin.

It's quite shocking to hear what you've reported. I hope the manager suffers.

[robcar]

Why not name the bank operating this scam.

I introduced a visiting friend to Kasikorn a couple of years ago and they were refusing to open an account if he didn't take their accident insurance. As it so happened he was about to hire a scooter for a couple of months so it seemed an opportune moment at the time and he took it. If he hadn't been hiring the bike........... no account. I am still being pestered to take their insurance even when just asking for a retirement sum verification letter.

[StevePIraq]

Bangkok Bank did it to a friend, he went straight to his lawyer who wrote to the bank, the bank cancelled the insurance and compensated him.

I later opened a Bangkok Bank account and they didn't try this scam.

[Big Boy]

I was offered a credit card with life insurance. I showed the paperwork to the other half and it went in the bin.

It's quite shocking to hear what you've reported. I hope the manager suffers.

Me too - same result.

[keskeseksa]

First I was asked by TMB to buy a policy but I refused. The manager, or assistant manager was so enraged that I did not subscribe that I closed my account. Then I went to Krungsri where the assistant manager slipped the contract between the papers I had to sign to open the account. They do this because they get huge commissions when they sell those pseudo life insurance. I am quite confident that I will get reimbursed, the bank must get millions from the poor people who are conned to subscribe 500 baht a month for 20 years and only get a tiny dividend. Most, at least all the ones I talked to just gave up after a few months and never got a satang back. I got a few responses from another forum, all the people who complained got their money back, I guess the banks don't want too much publicity about this scam.

[Thistle]

Can we all possible know where you have now opened your account,and without being scammed and happy with the final outcome please??

[oakdale160]

SAme with mortgage insurance. If you want to have your mortgage paid off when you pass on, but a 10y Term insurance policy with your nearest and cheapest as the benefactor, to pay off the mortgage. MUCH cheaper.

[StevePIraq]

I have opened accounts at Kasikorn who tried the scam but accepted I did not want insurance and Bangkok Bank who did not offer insurance. Bank of Ayudhya (Krungsri) did not try to offer insurance when I had an account with them, neither did TMB.

[Nereus]

You may have a better chance of winning the Lottery, but it may at least make you feel better:

https://www.ombudsman.go.th/10/eng/howtocomplaint.asp

[keskeseksa]

Update: According to my lawyer the banker is required to give me an English translation, if she hasn't it is easy to void the document. My lawyer called the banker to ask if I had been given a translation and she insisted she did. I went to the insurance company who told that an English translation of this policy does not exist.

[Gregjam]

While I have not had anyone at the bank try to sell me life insurance they have tried to sell accident insurance. Perhaps it is stretching the topic but has anyone got this and had the misfortune to need to use it.

[NOKYAI]

Yes I have the ‘palladium’ card with KTB.
When I was knocked off my scooter and attended A&E at Bangkok Hospital it worked quickly and efficiently
My other Thaishield kicked in after that for ongoing treatment and took a little time to sort out, get authorisation etc.
It was easy just to hand over your bank card when you are not feeling great!! I have it for my wife also despite her being on the B30 scheme at Hua Hin hospital

[T.I.G.R.]

Krungsri and another bank I can't recall have both successfully sold this load of manure to my wife and a friend. They both thought they got a good deal and I couldn't talk my wife out of it. These aren't as bad as the ones I'm constantly being bombarded with online with American banks.......welcome to the latest in consumerism.

[Nereus]

Let's expose the scammers

https://www.bangkokpost.com/opinion/pos ... ter-prawit

It would be in the interest of the retired expats, and apparently more local victims, to write a Sunday crime special report regarding life insurance scams perpetrated by bank staff at managerial levels.

Bank customers tend to trust managerial staff, so it is not surprising that those managers resort to deceptive tactics to tempt their customers to subscribe to those insurance policies from which they could claim as much as 40% commission.

Unfortunately the courts only look at the documents and have no regard for the manner in which the policies have been sold. This blatant injustice compels managers to become even more daring in their deceptive ways.

A proper story in the Bangkok Post might save a lot of potential victims.
Clara Holzer