Page 242 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 14: Trends in Insurance Sector

6. Prescribed rural and social sector norms in respect of Insurance business being underwritten Notes
by the companies.
7. The companies have also been asked to devise insurance policy to specific sector in the
economically weak population.

Research and Development Activities Undertaken by the Insurance Companies

The insurers have been conducting market research either in-house or through professional
agencies:

(i) To introduce tailor-made products targeted at specific segments of the population so that
Insurance can become more meaningful and affordable.
(ii) Risk assessment studies are being carried out for measuring accumulation of risk of a
particular place at any one point of time.
(iii) Consumer awareness campaigns are being encouraged to improve insurance literacy
levels by conducting workshops, distributing literature etc.

Protection of Interests of Policyholders

To protect the interests of holders of Insurance policies and to regulate, promote and ensure
orderly growth of the Insurance industry the Authority has taken the following steps:
(i) A leading consumer activist has been inducted into the Insurance Advisory Committee.

(ii) In addition to this member, this committee has drawn representation from the industry,
Insurance agents, women’s organisations and other interest groups.
(iii) While the Government has taken steps to strengthen the Boards of the State-run companies
by inducting representatives from consumer organisation and policyholder.
(iv) The Authority, on its part, was careful to ensure that all the new private companies
registered have a director representing consumer interests on their Boards.
(v) In addition to this measure all insurers have been advised to streamline their grievance
redressal machinery and set benchmarks for efficient and effective service.

(vi) All insurance companies are adhering to the Insurance Ombudsman scheme formulated
by the Government and complaints against insurance companies are being referred to
them by the aggrieved policyholders from time-to-time.
(vii) The Authority is conscious of the fact that the fine print should not take away what the
bold print promises and in this regard has come out with the Insurance Advertisement
and Disclosure Regulations which ensure that the Insurance companies adhere to fair
trade practices and transparent disclosure norms while addressing the policyholders or
the prospects.
(viii) All Insurance intermediaries, before obtaining a licence, or at the time of renewal of
licence, are required to undergo compulsory training to ensure that they can service the
policyholders better by being well trained and informed.
(ix) Guidelines have been issued to insurers to file their existing and new products with the
Authority. In case of new products insurers are required to submit details of:
Premium rating,

Policy conditions,

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