Grandma’s RM810,000 investments end up as life insurance policies

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A grandmother was shocked to find that the investment plans which she bought for RM810,000 were actually life insurance policies.

The victim, who wanted to be known only as Madam Loh, 71, said she was approached by an insurance consultant, aged about 30s, who had persuaded her to buy 12 investment plans, including mutual funds, between September 2009 and September last year.

“She told me that her husband had beaten her up and she needed someone to buy insurance from her to earn a living.

“At the same time, she also promoted several investment plans to me.

“I felt pity for her and bought some investment plans from her,” she told a press conference at the Penang MCA headquarters on Pahang Road in George Town yesterday.

In a bind: Komtar Barisan Nasional coordinator Loh Chye Teik (second right) and Lim (third right) looking at the 'investments' bought by Madam Loh at the state MCA headquarters in Pahang Road, George Town, yesterday

Loh said it was only in December that her son saw the plans and realised that his mother had actually bought life insurance policies for him and her two daughters.

Loh’s son David Soon, 50, who was also at the press conference, said he was shocked to find that his signature and his sisters’ signature forged on the documents.

“We never signed anything. My sisters are also living abroad,” he said.

Soon said he had lodged a police report and would consider taking legal action against the insurance consultant.

At the same press conference, pilot Baharuddin Md Yassin, 54, from Shah Alam, claimed he had bought four investment plans in 2009 that allegedly promised a return of between 18% to 20% per annum.

“I spent RM57,000 on the plans but until today I have not received any returns on the so-called investment,” he said, adding that he too realised the plans he had bought were converted into whole life insurance policies.

Penang MCA Public Complaints Bureau deputy chief Lim Thoon Deong said insurance consultants should not cheat their customers by promoting insurance policies as investment plans.

“I will send out letters to the concerned insurance companies for explanation and also write to Bank Negara to report the matter,” he said.