Irda chief for timely settlement of claims

Chairman of the Insurance Regulatory and Development Authority (Irda), C S Rao, on Thursday stressed on the need to safeguard the interests and welfare of the policy holders and consumers by the insurance industry.

Rao, while interacting with the members of industries at an interaction session organised by the Gujarat Chamber of Commerce and Industry (GCCI), also urged the insurance industry to accord top priority to customer service and policy-holder satisfaction, especially in regard to the timely settlement of claims and redressal of their grievances.

"Following economic liberalisation, the insurance sector has been opened for private companies and during the last three years, a number of private companies have entered the field in collaboration with foreign companies. But still there is a huge growth potential in the Indian insurance market and insurance companies should go to the rural areas for aggressive marketing," Rao said.

There are 28 insurance companies at present in the country giving employment to about 10 lakh people.

He also urged the insurance companies to come out with innovative policies for health insurance to cater to the different sections of the society. Referring to the practice of rebates in the industry, he said this is required to be discontinued.

"Customers must be made to understand that the practice of rebate will only deteriorate various services," he said.

Chairman of GCCI's Insurance Committee, Nilesh Desai, in his theme address on 'Opening of insurance sector: Problems and prospects', said the Irda should consider issuing guidelines to insurance brokers and agents to stop them from presenting a very rosy picture of the benefits of insurance to attract more customers. He pleaded to work out ways and means to provide insurance cover to more and more people on the rural side. "This will help the rural people get benefits of insurance in times of natural calamities," Desai said.

Earlier in his welcome address, Shreyas Pandya, president of GCCI, referred to the Irda proposal to set up an institute of surveyors. He requested Rao to consider setting up of such an institute in Ahmedabad and assured all help and co-operation of the chamber in this connection.

Pandya in his speech also referred to the substantial increase in medical insurance and mediclaims business which has crossed the figure of Rs 1000 crore for the first time.

"However, steps are required to be taken to avoid undue delay in payment of mediclaims and raising unnecessary queries by insurance companies. The corporate houses also should be offered motor vehicle insurance at a lower premium," Pandya said.