a 3rd of institutions inspected as “anomaly” | EUROtoday

Lhe Fraud Repression (DGCCRF) revealed this Thursday, October 31, the eve of All Saints’ Day, its report on funeral insurance coverage. Some 69 institutions have been inspected. These are financial institution businesses belonging to giant banking teams, insurers, a few of which specialise in funeral insurance coverage, mutual societies, brokers and funeral operators.

Two kinds of contracts have been verified: capital life insurance coverage contracts – which cowl the financing of funerals however don’t embody any funeral advantages – and “funeral agreement” contracts – which additionally cowl the group of funeral providers. these. “Of the 69 establishments inspected, 23 were abnormal,” signifies the Fraud Repression which despatched 27 warnings and 5 injunctions to adjust to the professionals concerned.

Among the irregularities famous, the existence of hidden prices for policyholders. For instance, “a contract offered by a major mutual insurance company indicated that it did not cover the costs of digging a grave, which amounted to leaving these costs the responsibility of the family,” says the DGCCRF. This service, which is dependent upon Bercy, specifies that, following its intervention, the ensures provided have been modified to raised cowl funeral prices.

Violations of client rights

Some insurance coverage brokers have been sanctioned for his or her unhealthy practices reported following their abusive canvassing. For instance, “a broker misled a consumer by letting him believe, wrongly, that electronically signing a “membership application” didn’t bind him.” Another dealer unduly collected insurance coverage premiums from shoppers who contested any dedication.

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Some contracts proposed included clauses which didn’t respect the rights of the patron. The DGCCRF studies that one in every of these clauses “leads the consumer to believe that following the death of the subscriber, the payment of the capital could be called into question if the former does not provide supporting documents falling within the sole discretion of the professional”.

The DGCCRF has introduced that it’s going to proceed its controls till 2025. Some 1,000 operators ought to see their practices scrutinized.