New Delhi, July 2 -- Cases where insurance products are sold under the guise of fixed deposits or investment schemes constitute one of the most common forms of mis-selling. Insurance and fixed deposits are entirely different financial products, and a customer must always be informed about the nature of the product being purchased, its benefits, risks, premium commitments and surrender conditions. If an insurance policy has been issued without informed consent or through misrepresentation, the policyholder has the right to challenge the transaction.

The first step is to collect and preserve all available evidence. This may include policy documents, written communication with the bank or insurer, application forms, premium receipts and any...