New Delhi, July 16 -- When Ayaz Parkar's father passed away, the family made a startling discovery. The Qatar-based professional found that his late father had bought 10 life insurance policies: eight with his daughter as the life insured and two covering his grandchildren.

"We discovered them only after he passed away. Why would a senior citizen insure his daughter's life? And that too through eight policies? There is no insurable interest. Clearly, nobody explained to him the product well," said Parkar.

The paperwork raised more questions. In some policies, his father was the proposer and in others, Parkar's sister was both proposer and life insured. Yet, all the premiums were debited from the father's bank account, and his mobile num...