Insurance in India - Root Causes
Dear Friends,
Based on your inputs, below are the Key Issues in the Insurance sector. Please review and help identify Root Causes for these issues.
We will then work the solutions through a separate post and submit the whitepaper to associated Government authorities for actions.
Thanks for your participation!
Rajendra Pratap Gupta
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Insurance in India – Key Issues
1. Cost of treatment when not hospitalized, not covered
2. Premium charges are very high
3. Claim processing is slow
4. No reason is given for the rejection of the claim
5. The duration in which a claim will be settled is not mentioned
6. All companies don’t offer cashless insurance
7. All hospitals are not covered under the cashless program
8. Vehicle loss surveyors have thick closeness with fraudsters, their commission from fraud claim settlement is fixed
9. Application forms are lengthy and confusing
10. Terms and conditions are printed in small letters which usually go unnoticed
11. Sales executives do not give out the complete details while selling
12. Frauds and bribery is common in the insurance sector
13. Mediclaim for senior citizens is very expensive
14. Grievance redressal channel is very bad more
Based on your inputs, below are the Key Issues in the Insurance sector. Please review and help identify Root Causes for these issues.
We will then work the solutions through a separate post and submit the whitepaper to associated Government authorities for actions.
Thanks for your participation!
Rajendra Pratap Gupta
------------------------------------------------------------------------------------------------------------------------------------------
Insurance in India – Key Issues
1. Cost of treatment when not hospitalized, not covered
2. Premium charges are very high
3. Claim processing is slow
4. No reason is given for the rejection of the claim
5. The duration in which a claim will be settled is not mentioned
6. All companies don’t offer cashless insurance
7. All hospitals are not covered under the cashless program
8. Vehicle loss surveyors have thick closeness with fraudsters, their commission from fraud claim settlement is fixed
9. Application forms are lengthy and confusing
10. Terms and conditions are printed in small letters which usually go unnoticed
11. Sales executives do not give out the complete details while selling
12. Frauds and bribery is common in the insurance sector
13. Mediclaim for senior citizens is very expensive
14. Grievance redressal channel is very bad more
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It gives me an impression that several people take life insurance policies for life cover as well as saving cum tax relief. The death rate is however is very low and most of the people get their survival claims. However when the a policy matures after period of 10 to 20 years what is the value of money received by them. Is it at least to equivalent to the amount paid by the,m. It may appear that they are getting higher amount with a nominal bonus. But when the purchase value of money is taken into account they any not getting even ten percent of the money invested when compared to purchase value of money at the time of investment. it only gives good benefit to insurance companies rather than general public which are investing in life insurance policies. I will give my comments on other insurance policies later more
Dec 13
there is not even a single fresh mediclaim policy which an individual above 80 years can buy !!!! you have to buy it somewhere before 65 /70 years and then keep on maintaining the same till you die !!!!! more
Dec 02
Most often the agents do not give the risk factors involved in taking the policy. They give all the positive points and conveniently refrain from the negatives. It is more for the agent's commission than for the benefit of the client. more
Nov 26
every policy paper must be disclosed to the clients before the policy is signed and there must be a provision for customization. There should not be any verbal assurance and if it is made then it must be immediately incorporated in the filled-in form. Agents must be penalized for any wrong-doings done to the policy-holders. IRDA must make it compulsory for the Insurance companies to follow this stringently. more
Nov 25
Presently, the crop insurance is related with loan amount which means if branch manager is kind enough he may give Rs. 5 lakh / ha for soyabeen crop (against the cost of cultivation of Rs. 35000 and it has happened in one State) and claim settled @ of 60% means the account holder got an insurance of Rs.3 lakh/ha against the total value of crop (Av.best yield 17 Qtl and highest price Rs.4500) of Rs. 77000/ha. So strictly the crop insurance should be based on the value of crop (means average yield multiplied by Price) so that the poor farmer who was not given adequate credit by bank may also be compensated adeqautely. Agriculture Insurance Company of India (AICI) promoted by GoI should take a note of it and concerned banks should be------------------------. ? more
Nov 22
