Insurance companies need to be more generous while disbursing claims besides making products offering higher returns, governor ESL Narasimhan has said.
“Considering that insurance is an extremely low return investment, there is a need to work out a plan where return on investment is a little more attractive,” he said.
Addressing the 7th Global Insurance Summit here on Wednesday, Narasimhan candidly said, “We need to work towards removing the air of mystery that surrounds insurance and make products simple and demystify them so that people can accept them readily.”
According to him, insurance agents need to be a little more well-versed with the various options available and even the risks, shortcomings and the drawbacks that are involved in the policy so that the consumer is better informed.
He said there was a need to come up with a commonly agreed upon code of ethics in advertisements by insurance firms, and eliminate confusion among customers about returns on investment. He said “There is a need to evolve a mechanism for speedy disposal of insurance claims. The insurance claim payment procedure should be simplified and claims must be settled fast so that people feel more ensured and secured when they buy an insurance policy.”
He emphasised the need to make a holistic policy in the health insurance segment.