Beware of the “Top-Best” Trap: How Banks and Aggregators Mislead You into Buying the Wrong Insurance

When it comes to buying insurance, most customers want the “best” policy. But here’s the catch — sometimes what is marketed as the top or best insurance plan may not be the most suitable one for you. Banks, brokers, and online aggregators often present products in a way that benefits them more than it benefits you. This practice is called mis-selling, and it’s more common than you think.

In the race to make higher profits, many institutions push policies from selected insurance companies, labeling them as the “No. 1” or “Top Rated” options. While these titles sound appealing, they are often based on internal sales targets, commission structures, or special partnerships — not on what’s truly best for the customer.

How Mis-Selling Works in the Insurance Market

Mis-selling occurs when a product is sold by giving incomplete, exaggerated, or misleading information, or by omitting important details that could influence your decision. In the insurance sector, this can happen in several ways:

Selective Promotion: Banks and aggregators highlight products from certain companies because they earn higher commissions from them.

Ranking Manipulation: Plans are labeled “Best” or “Top 5” based on biased criteria that favor high-profit products rather than customer needs.

Hiding Limitations: Key exclusions, waiting periods, or low claim settlement ratios are often left out of the conversation.

Pressuring Customers: Sales teams sometimes create a sense of urgency — “Buy now, limited-time offer!” — to push customers into quick decisions.

The result? You might end up with a policy that doesn’t fit your budget, offers limited coverage, or has complicated claim procedures.

Why “Top-Best” Labels Can Be Dangerous

These rankings can give customers a false sense of security. If you see “Top Rated” on an aggregator site, you might assume that an independent, unbiased evaluation has taken place. In reality, the ranking may be driven by marketing deals. This means you could be ignoring better options simply because they are not promoted as aggressively.

For example, a plan ranked “No. 1” on one platform might not even appear in the top 10 on another — because each platform has its own commercial priorities.

How to Protect Yourself from Mis-Selling

Here are some smart steps to make sure you choose the right insurance:

• Do Your Own Research: Don’t rely solely on what the bank or website shows you. Compare multiple products across different platforms.

• Check Official Ratings: Refer to IRDAI (Insurance Regulatory and Development Authority of India) reports for unbiased claim settlement ratios and solvency margins.

• Read the Fine Print: Go through the policy wordings carefully — especially the exclusions, waiting periods, and claim process.

• Avoid Rushing: Never buy under pressure. Take time to evaluate your options.

• Ask Questions: If something sounds too good to be true, ask for written confirmation or supporting documents.

The Bottom Line

Insurance is a long-term financial commitment. Choosing the wrong plan can cost you money, time, and peace of mind. Banks and aggregators are in the business of selling — not necessarily advising — so their “Top” or “Best” recommendations may not align with your personal needs.

Before signing any policy, make sure your choice is based on facts, not flashy rankings. In the end, your awareness is the strongest safeguard against insurance mis-selling.