Whom Are You Punishing ?

Story 1

April 2020

Discussion between Manoj (Client) and Niraj (His Advisor).

Manoj (Shouting): Why Didn’t You inform me that the markets are going to fall ? I would have booked some profit.

Niraj : Nobody can predict such short term movements Sir. And such falls are temporary. We will soon see recovery in next 12-18 months. If Possible, we should invest more at these levels.

Manoj : I don’t know all that. As an advisor, you are supposed to predict all this. I am unhappy with your services. My Investment of Rs. 10 Lakhs has become Rs. 8 Lakhs due to your ignorance. I am not going to invest a single rupee more.

August 2020

Manoj : I can see that the markets have risen. My Rs. 10 Lakhs is now back to Rs. 10.10 Lakhs. Please redeem my investments as soon as possible. I don’t trust the markets nor I trust you anymore.

Niraj : If we can stay invested for another 6-8 months, we can see good growth.

Manoj : No Way. I just don’t want to listen to you anymore. Just do as told.

Niraj : No Problem Sir. We will redeem your investments.

December 2020

Manoj (Crying): If I had stayed invested, my Rs. 10 Lakhs would have become more than Rs. 14 Lakhs in 4 months. In an attempt to punish my advisor, I ended up punishing myself.

Story 2

Mr. Harish Wanted to buy a health insurance plan for his family. His Wife was having some medical history. Thus, the insurance company gave a counter offer to cover Mr. Harish and the two kids.

Listening to the counter offer, Mr. Harish Got agitated and he asked the company to cancel his proposal and refund his money.

Harish : How dare they deny my wife’s health insurance proposal?

Niraj : Sir, insurance companies cover only standard lives. They cover slightly substandard lives at higher premium and if it is a more risky case, they can deny.

Harish : Is this the way they treat their customers ? I don’t want to buy health insurance from them.

Niraj : Ok Sir.

Three months later, Mr. Harish met an accident and ended up paying Rs. 1.60 Lakhs towards hospital bill. If he had taken the counter offer, at least other 3 members would have been covered. In an attempt to punish the insurance company, he ended up punishing himself.

Story 3

Year 2015 : Mr and Mrs Singh bought their first health insurance policy at the age of 58. By this time, Mr. Singh had already developed some health conditions and there was a 48 months waiting period in the policy for pre-existing diseases.

Year 2017 : Mr Singh had a hospitalisation related to his pre-existing diseases. Health Insurance company rejected the claim as it was a pre-existing disease and had not completed the required waiting period.

Mrs Singh Got Angry. She asked the agent to close the policy immediately and get a new policy for them. The agent also didn’t bother to tell her the repercussions. He got them a new policy with fresh 48 months waiting period.

Year 2020 : Mr Singh again had a hospitalisation. This time again it was declined by the new health insurance company as the new policy had still not completed the 48 months waiting period. Had they stayed in the same policy, they would have got the second claim of 2020 settled. 

In all the above cases, we see a common pattern. The emotions take over logic. The urge to punish someone, compels the person to take some action. But as the action is based on anger (and not logic) it harms the person himself than anyone else.

Lets remember Friends. It is natural to get angry when things don’t go our way.

But when you are taking the action, ask this question to yourself

“Whom am I punishing?”

Is it the Insurance Company ? Is it the Advisor ? Or is it you and your Family ?

Lets Ensure that, in an urge to punish the insurance company or the advisor, we are not putting our families to risk.

We look forward to your valuable comments and feedback.

The Author Prof. Saurabh Bajaj (BE, MBA, FRM, CFGP, AFGP) is CEO with Nidhi Investments, Mumbai. His articles have a readership from 78 Countries across the Globe. He may be contacted on CEO@nidhiinvestments.com if you have any questions.

(The views mentioned in the article are personal opinion of the author)

#NidhiInvestments

#ProfessorBajaj

#SIP

#HealthInsurance

Published by professorbajaj

Prof. Saurabh Bajaj is an Author, Mentor, Motivational Speaker and Wealth Planner. He has done his MBA from Narsee Monjee Institute of Management Studies (NMIMS) Mumbai, one of the top 10 management institutes in India. He holds the prestigious FRM (Financial Risk Manager) degree awarded by Global Association of Risk Professionals (GARP), USA. Till date, there are less than 15,000 professionals in the world, who have been honored with this degree. He has also been awarded CFGP (Chartered Financial Goal Planner) Certification by AAFM (American Academy of Financial Management). After his MBA, he joined J P Morgan, the second largest Investment Bank in the world. He has worked with J P Morgan as Risk Analyst for more than two years. Prof. Bajaj also holds an Advisory certification awarded by AMFI (Association of Mutual Funds of India). During his stint at Bombay Stock Exchange, he has handled Investment Management and Treasury operations of the BSE Corpus. He has set up an entrepreneurship venture in the field of Wealth Planning and Investment Consulting under the name “Nidhi Investments” and holds the profile of CEO. Prof. Bajaj sits on the Expert Panel of CAClubindia.com and MBAClubindia.com as Investment Expert. He is actively involved in investor education through his blog www.professorbajaj.com which has a readership from 78 Countries all over the world. His articles are also regularly published in caclubindia.com , mbaclubindia.com , totalca.com , charteredclub.com, bankbazaar.com and lawyersclubindia.com . He has been awarded the title of “Best Article Writer” from caclubIndia.com in Jan 2012 and has been selected amongst “Top 5 Technical Writers” from all over India in Feb 2013. He has been invited by various TV Channels like SPIN TV, CNBC TV18, UTV Bloomberg Etc for programs like "Expert Advice" , "What Markets Want ", "Budget Analysis" etc. He has been invited by Several organisations like Lions Club, Rotary Club, Agrawal Welfare Foundation, Rajasthan Mandal, Agroha Vikas Trust, Union MF, UTI MF, Arthamitra Gurukulam, Vidyalankar Institute of Technology etc for expert lecture on "Smart Investing", "Life is A Celebration", "Financial Freedom", "The Digital IFA" etc. He was ranked 8th Merit at All India level NMAT which got him selected for MBA programme at NMIMS, Mumbai. He did his MBA with Capital Markets as his specialisation. Soft Skills has become an inevitable part of every selection process and teaching learning process these days. The students from small towns and tier II cities, in spite of being talented and well equipped with technical skills, are seen struggling in the selection process. This is because of their lack of exposure to these soft skills. Mr. Bajaj has a zeal for training candidates to develop these skills and has been imparting the same on since last two years. This zeal and passion inspired him to set up his own firm called “Knowledge Circle” which aims to train candidates for soft skills. Till date, he has trained more than 5000 participants from over 220 organizations across various fields of soft skills. He has been associated with MSBTE (Maharashtra State Board of Technical Education) to conduct Soft skills training workshop for the faculties of Polytechnic Colleges in Entire Maharashtra (Mumbai Region, Pune Region, Aurangabad Region and Nagpur Region) since last 8 years. He has also been associated with ICAI (Institute of Chartered Accountants of India) for training CA Students on various topics related to Communications skills, Group Discussions etc. He was invited by Fr. Agnel Polytechnic College, Vashi for a motivational workshop for faculties. He was also invited by Vivekanad Polytechnic College for "Communication Skills and Email Etiquette" training for non-teaching staff. Apart from these, he has conducted “Capacity Building Soft Skills workshop for Faculties” at ITI Gunj, ITI Pusad, ITI Digras and ITI Umarkhed. This was the first ever soft skills workshop for faculties in the history of ITI’s in Vidarbha. He was also invited by Shivaji Education Society to conduct similar Soft skills workshops for the faculties and office staff of Shivaji Junior College Pusad, Shivaji High School Pusad, Shivaji Vidyalaya Belora and Shivaji Vidyalaya Bhojla. He has conducted training workshop on “Effective Presentation Skills” for the relationship managers of HDFC Mutual Fund, Andheri Branch, Mumbai. He has also been invited at College of Management and Computer Science, Yavatmal, College of Dairy Technology, Warud, B N College of Engineering, Pusad, B D College of Engineering, Wardha, College of Engineering and Technology, Akola, Dr.N.P.Hirani Institute of Polytechnic, Pusad etc. for the Guest lecture on “Developing Interview Skills”.

25 thoughts on “Whom Are You Punishing ?

  1. Rightly said Saurabh Bhai and happy to note that you have again started writing Articles on your blog. It really helps your clients as well as the general public.

    1. Very nice day to day examples … and common problems faced by all . This study is an eye opener . Glad it comes from Saurabh Bhaiya 👍

    2. Very nice day to day experiences … and common problems faced by all . This study is an eye opener . Glad it comes from Saurabh Bhaiya 👍

  2. The whole problem is that we have short term thinking and knee-jerk reactions..if we control our emotions and try to seek some logical solutions, so many situations can be resolved easily🙏🏼🙏🏼
    Well written and good examples.
    Thank you for sharing.

  3. Very much impressed with your writings
    its a common problem.
    This kind of articles should reach mass crowds and media.
    so that all of us will benefit in this.

  4. “emotions should never take over logic” – this statement suffices the whole essence of the article and also regarding real life problems

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