Page 48 - Insurance Times May 2023

4. There is also no training for agents at all. This was presence, assurances and their "word of mouth" that
discontinued 10/15 years back and as a result mis-selling will eventually generate the desired trust to make the
and mistrust are galore. Almost all insurers consider vision of market penetration with a sustainable success.
training as a cost rather than a long-term benefit. Mis-
7. Due to high premium rate, penetration is badly
selling is also due to various online sale of policies by
affected, therefore, Govt. should remove GST from
web aggregators who treat insurance as products just
General Insurance Premium.
like shampoo and other first moving consumer goods
8. Insurance Companies are providing 99% discount in
(FMCGs) products rather than as the mare contractual
premium. The rate should be rationalized so that scope
obligations. Insurance products cannot be sold like other
of discount can be limited and insurance sales be
commodities.
possible on optimum level.
5. The concept of Rural Representative (RR) being
9. All the offices of Gram Panchayat, Zila Parishad should
introduced earlier to be redefined and its due revival is
be equipped properly with Micro insurance policy
the dire need to increase insurance penetration in rural
prospectus, leaflets, product information, and
populace.
solicitation. If possible, there should be at least a kiosk/
A summarized representation from the
counter to sell the insurance at a very grass-root level.
deliberations in the seminar is being made to IRDAI
10. IRDAI should have proper control to elicit, store and
and the government to increase penetration. Some
share the repudiated claims and publish monthly details
important points include
of all such repudiated claims with all factual
1. A section of the price of premium insurance premium information.
be borne by the Various Governments/NGOs.
11. IRDAI must have an exclusive & dedicated department
2. Keeping the end price of premium low for the customer to have continuous watch on claim assessment and
and mitigating the losses of Insurance in a calculated payment of the claims starting from very small liability
manner is a dire need. As the Governments will clearly to big ones.
be using the machineries of the Insurance Companies
12. If the claim is repudiated and denied, the insurance
as service providing resources, this will create sufficient
company should give the survey report to the insured
IMPETUS for running PSUs on commercial priorities on
with the letter of denial of the claim with definite
one hand, also providing more investible funds to the
reasons, mandatorily, by endorsing a copy of that
insurers to generate multiplier effect for any Society at
information to IRDAI also.
large by optimally using these resources.
13. In the Consumer Court there should be NO provision for
3. Building an environment of trust between the
representation by advocates. However, the insured
government, the service providers and the end
should be free to utilize the expert's services for their
beneficiaries so that the insurance penetration may
claim from the available market. At present it has
increase.
become a "Legal Battle Forum" like regular court and
4. Considering remoteness of village population, social this arrangement is not complying with the very basic
strata, level of education /insurance awareness,
objective of the Consumer redressal, where the forum
availability of smart phones, publicity plans of insurance
members are in majority belonging to non-judicial
penetration of insurers, brokers, agents and POS, etc.
entities.
needs to be formalized.
14. The Ombudsman office should exist at every district
5. Popularising various insurance products by focusing
level and the limit of Rs. 30,00,000.00 (Rupees Thirty
around television channels, hoardings in strategic places,
Lakh) as exists now, should be removed to make it
leaving some space for newspapers or mobile gadgetry.
available for all complaints related to personal line of
6. Most importantly, the general populace clearly prefers businesses. Since the Ombudsman was created on
human interference like, an insurance agent, social 11.11.1998 - almost 25 years back and there is
workers like village level workers, doctors, Bank staff, considerable increase in prices of all commodities during
Postal Department's Staff, Govt. Servants etc. It is their this period, thereby, increasing all insurance claim

The Insurance Times May 2023 43