Page 39 - Insurance Times November 2019

Will ‘Sabse Pehle Life Insurance’

make a mark?

I n March 2017, the Association of Mutual Funds of broker. We need products with more clarity in policy word-

ings and a simple purchase process, he added.
India (Amfi) launched a campaign with the tagline
Mutual Funds Sahi Hai, which is seen as hugely suc-
cessful, with more and more people buying funds.
brought to the forefront the same way motor insurance is.
The insurance industry has now come up with a Goyal said the need for taking term plans need to be
With the implementation of the amendments to the Mo-
similar campaign, Sabse Pehle Life Insurance, with an eye tor Vehicles Act, not having a motor insurance can attract
on boosting penetration. Industry body Life Insurance a hefty penalty.
Council announced the campaign last week to increase
awareness and help people understand the true purpose A term plan is a pure life cover which provides coverage
of taking life insurance. for a defined period of time. It is the cheapest form of life
insurance as it doesn’t double up as an investment prod-
Insurance penetration in India continues to be one of the uct. In case the policyholder dies before the plan expires,
lowest globally at 3.69%, according to the FY18 annual the nominee gets the death benefit.
report of Insurance Regulatory and Development Author-
ity of India (Irdai). Between FY15 and FY17, life insurance People are becoming aware about health insurance too
penetration in the country was a flat 2.7%. The complex because of rising healthcare costs. “Life insurance still
nature of the product with a host of terms and conditions hasn’t got the attention it deserves," said Goyal.
is one of the biggest reasons why the product is not bought One of the biggest problems is the fact that people look
in large numbers. at life insurance only as a tax-saving tool rather than a

In a press release announcing the launch of this campaign, protection plan. Vishal Dhawan, certified financial planner
V. Manickam, secretary, Life Insurance Council, said the and founder of Plan Ahead Wealth Advisors, said another
slogan Sabse Pehle Life Insurance comes from the cultural reason why life insurance penetration is low is due to the
nuance in India where the elders have always stressed on lack of willingness to buy or invest in something with a
giving what’s most essential the top-most priority. “When long-term perspective.
launched, the campaign will use a combination of adver- With this campaign, the council has an opportunity to seg-
tising, media coverage, on-ground activation, and digital regate life insurance products based on protection and pro-
and social media initiatives to ensure extensive outreach. tection-cum-investment products. “The council should en-
The slogan is being presented in all major Indian languages courage simple documents explaining benefits and risks in
such as Tamil, Telugu, Kannada, Malayalam, and Bengali significantly legible font size similar to the ones that come
which will help increase its visibility and bring recall value," with credit cards where all terms and conditions are stated
Manickam told Mint. clearly. A significant push towards using life insurance as a
The task ahead pure protection plan is a good first step," said Dhawan.
The council will have to take up various measures to in- With life insurance products easily available from 24 insur-
crease awareness about the product. “The main challenge ance companies, it is not the availability but the lack of
is in making people aware why it is a must to have life awareness that is a problem.
insurance policy. It needs to be highlighted that life insur- There’s low financial literacy about the benefits of protec-
ance is the only way to ensure your family is financially tion-focused insurance plans, said Dhawan. The lengthy
secure and protected in case of any eventuality," said paperwork is also a huge deterrent, he added. (Source:
Rakesh Goyal, director, Probus Insurance, an insurance Livemint)

The Insurance Times, November 2019 39