Page 46 - Insurance Times March 2024

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Supriya Rathi
Wholetime Director
Anand Rathi Insurance Brokers Ltd.

"The moment of claim is the moment of truth. Often the trust of policyholders is eroded when claims
are rejected or delayed. Complex wording and legalese of insurance policy documents is a large
deterrent when investing in an insurance product."

T he government's mission of universal insurance prone to mis-selling. Simplified policy benefits, easy to access
coverage, providing a safety net for each citizen,
grievance mechanisms, robust and timely claims settlements
are imperative to building consumer confidence in insurance
marking 100 years of independence aligns is
critical to creating a financially inclusive India.
While we are now the 5th largest country globally in terms products.
of GDP, our insurance penetration is a 4.2% of GDP, In November 2023 IRDAI proposed a initiative to simplify
significantly below the global average of 7%. customer information sheets (CIS) for health insurance
policyholders. The CIS is a simplified one pager containing
While both government and regulatory efforts have key policy details.The initiative aims to simplify the legal
accelerated in the past few years to drive up insurance jargon in policy terms and conditions. Rigour in adhering to
penetration, consistent efforts by all stakeholders: transparent sales processes, self regulation, commitment of
government, social non-profit organizations and the private insurers and intermediaries to client centricity and good
sector are required; to expand the safety net the insurance governance are a must to change customer perceptions of
industry provides to the economic fabric of the nation. the industry and achieve its true potential.
Enhancing Insurance Awareness
Building on Trust and transparency
The use of insurance as a risk management tool is important
The moment of claim is the moment of truth. Often the not just for the family unit but for the community at large.
trust of policyholders is eroded when claims are rejected or Covid-19 epidemic saw a significant increase in demand for
delayed. Complex wording and legalese of insurance policy insurance as consumers realized its utility in managing
documents is a large deterrent when investing in an unforeseen risks. While the industry is witnessing double digit
insurance product. growth, awareness is still a large void.

Insurance sales are intrinsically push driven and thus often Insurance and financial literacy should be incorporated as

The Insurance Times March 2024 41