The Insurance Sector And The Related Problems In India
With its overwhelming growth rate, Insurance has turn out to be one of the fastest promising sectors in India
. With the country openings its Insurance sector doors for the Global players, this growth is predictable to continue for numerous coming years. The country at present has 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 Life Insurance companies operating in the country. Together with banking services, insurance services add approximately around 7% towards the countrys GDP. The data revel that approximately 80% of Indian populations are devoid of life insurance cover and the Health insurance is still in its nascent stage. This is a pointer that growth potential for the insurance sector is immense in India.The related aspect that further has made this field attractive is customers have great choice from a huge diversity of products from risk insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. The increasing numbers of the customers are business products and services on the basis of their actual needs and not just conventional money back policies, which is not very preferable when considered for long-term protection and savings. A plethora of saving and investment plans in the market have been making the sector lucrative.
The Insurance Regulatory and Development Authority (IRDA) is the regulatory body composed in April, 2010 to uphold the interests of the policyholders and to encourage the growth of the Insurance industry in India. IRDA is initiating numerous steps to protect the rights of the consumers and to promote and computerize the current system to make it more user-friendly.
The agency also established the Consumer Affairs Department to provide focused administration and the compliance by insurers of the IRDA Regulations so as to protect the Policyholders interests. It also helps to empower consumers by providing them the knowledge of procedures and mechanisms that are accessible for complaint redressal through a variety of campaigns.
Even after so many steps taken by the regulatory body the consumer do not seem to be satisfied with the services provided by the various service providers especially by the private players namely Tata AIG and United India Insurance. There are several other renowned names in the list. The sheer fact that the market is still dominated by a single government owned enterprise Life Insurance Corporation of India makes on believe that the private players are still lagging behind. The trust factor that is crucial determinant in the field of insurance has not been built up by private player.
The general complaints against these companies were several associated hidden cost, concealing the rider benefits, frauds by agent and non availability of various associated benefits which makes the customer feel deprived and thus they simply use the term fraud. The fact that these big providers are not able to maintain the customer points out the acute need of some stringent action that governs not only the service providers but also the customer so that various frau claims and charges could be controlled.
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