Financial literacy is very low in India. Many people (agents) who deal with financial products, use this lack of financial literacy, to try to cheat citizens. In this blog, we will discuss the fundamental financial rights of the people of India.
You have the right to know how much in commission your insurance agent or mutual fund distributor makes, from the financial product which he sells you. Your insurance agent will get nearly 25-35% commission on the premium of the endowment life insurance plan you avail, especially in the first year on plans which have a premium paying term of 10 years or more. Your agent should furnish this information before selling you the endowment life insurance policy.
The commission received by the Mutual fund distributor, will be disclosed in your common account statement. If this information is not disclosed, contact SEBI for mutual funds and IRDAI for insurance if commissions of life insurance agents are not disclosed.
According to IRDA rules, you have the right to return your insurance policy, within 15 days of receiving the policy documents. These 15 days are called the free-look period. In this period, you can study the life insurance plan and decide whether the plan fits your needs. If you find the insurance plan doesn't meet your needs, you can return it within 15 days and get your money back.
Even if you have not repaid your loans, lenders or recovery agents should treat you with respect. Lenders should give you a 60-day notice. They have no right to harass you during this period and they can call you only between 7am to 7pm. If they harass you, approach the bank or file an FIR with the Police against them.
If you have booked a property and paid money for it, you have all the right to get the possession of the property on time. If your builder does not give you the possession of the property within the promised time, he has to pay interest as a penalty, just as you pay EMIs on your home loan. You can also ask him to refund the entire amount which you have paid within 45 days.
5. Right not to pay service charges
If you are not happy with the services provided at a restaurant, you have all the right not to pay service charges. Unlike Goods and Services Tax, the service charge is not levied by the government and it goes to the restaurant. If you are forced to pay service charges, you can approach the Department of Consumer Affairs and lodge a complaint.