Rajiv Takru, Secretary (Financial Services), Ministry of Finance has asked insurance companies not to betray the trust of policyholders and urged them to maintain high level of transparency while initiating any business relationship.
During the 16th Insurance Summit organized by Confederation of Indian Industry (CII), Takru shared an incident about himself when he was mis-sold a product by an LIC agent. He said, “Nobody reads the policy document carefully, hence, it is a duty of agents and insurance companies to apprise policyholders of such implicit clauses.”
Takru urged private insurance companies to expand their presence in small cities with a population of 10,000. At present, the finance ministry had called for opening one office each of LIC and public general insurance companies in such areas so as to increase the insurance penetration.
The Secretary underlined the importance of quantity, service and delivery of insurance products to gain optimal growth and trust of policyholders. Also, he stressed the need to improve grievances redressal system.
Takru said “Insurance is not pure business; there is also social spirit behind it. The guiding principle behind insurance is much more beyond making profits.”
Besides, the secretary asked the insurance companies to provide modern tools and training to agents so that they could increase their productivity.
What steps can the regulator take to curb mi-selling of insurance policies? Give us your suggestions.