Page 6 - Life Insurance Today May 2016
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4. Promoting efficiency in the conduct of the insurance be sanctioned, issuance of a duplicate policy, placing
business any endorsement on the policy etc.
5. Regulating the investment of funds by the insurance 15 days time for the settlement of any maturity claim
companies of a policy, after receipt of all the necessary
requirements
6. Specifying the business to be done by insurers in the
Rural & Social Sectors 30 days time for the settlement of a non-early death
claim after the receipt of all the requirements
7. Handling disputes between insurers and
intermediaries 60 days time in case of an early death claim
8. Taking care of the customers' grievances, both directly Six months time if any investigation is caused into the
and indirectly early death claim.
9. Insisting on the Required Solvency Margins (RSM) for Free-look period of 15 days allowed for a customer to
the insurers so that the interests of the customers are return the policy document and claim refund of the
well protected from the dangers of any financial premium, if the policyholder is not satisfied with the
insolvency by any insurer conditions of the policy is a great revolutionary step
taken by the IRDAI.
10. Protecting the interests of the policyholders in case of
any take over of an insurer by another insurance The Statistics as on March 2015 on
company by careful and proper valuation and then Servicing Parameters
only permitting it and seeing to it that the outgoing
existing customers are taken care of well by adequate The number of agents has fallen to 2068000 in the
servicing arrangements and industry with also the number of employees coming down
to 2.5 lacs.
11. Ensuring that the leadership of each insurance
company is in safe hands by helping in the selection The number of days for the settlement of a death claim
of a suitable and fit candidate as its CEO. on an average has increased, as per the following
examples:
The Position so far 1. DHFL Pramerica life insurance company- 207 days.
Even before the passing of the Insurance Act 2015, IRDAI 2. Shriram life insurance company- 172 days.
has done a commendable job by bringing out the
Policyholders' Protection Guidelines 2002 by incorporating 3. Edelweiss Tokyo life insurance company- 77 days.
the following benchmarks:
10 days time for complying to the majority of the No doubt, there are life insurance companies like the PNB
Met life insurance company taking only 15 days and the
requests of the customers like the Change of Address, Star Union Daichi life insurance company taking only 19
nomination/ assignment, revival of the policy, loan to days to settle a death claim.
Again in the settlement of death claims, Edelweiss Tokyo
and the DHFL Pramerica life insurance company settled
only 57% of the registered death claims.
In the repudiation of the death claims' front too, the
performance of these insurance companies is not very
flattering- it is whooping 37%.
The number of the policyholders' complaints is also quite
alarming:
1. LIC of India- 81614.
2. ICICI Pru life insurance- 11796
"Love all, trust a few, do wrong to none."
6 May 2016 Life Insurance Today
