The Insurance Regulatory and
Development Authority of India (Irdai) Chairman, Mr Ajay Seth, has raised
concern over the amount settled in Insurance claims being significantly small
compared to amount claimed. He mentioned that the Regulator is closely monitoring
the gaps in health insurance claim settlements, even as overall premiums
increased.
As per him, promptness, fairness and
transparency in claim settlement by insurers will build the trust, else the
Insurance penetration will continue to remain low. He further added that the
industry needs to accelerate growth, especially in underserved rural areas,
informal sector workers, and women. A faster progress is needed to meet the
vision of ‘Insurance for All’ by 2047 – he added.
To improve the services, Irdai is
expanding digital access for buying, servicing, and claiming. It is promoting
innovation through flexible product design, micro-insurance, and inclusive
models and also emphasizing simplicity in communication. The Regulatory
approach will be both facilitative and firm.
Even as Industry resolution rate remained 99%, Mr Seth stressed the
importance of Insurance ombudsman for building trust through quick, fast, and
just awards, ensuring fair treatment to the policyholders, proper disclosures
of facts, responsible business conduct by insurers and intermediaries,
objective and adequate advice to the policyholders, protection of assets and
data, including from fraud and abuse, adequate complaints handling, and
redressal mechanisms.
Our view:
As per annual report of IRDAI, the life insurance penetration has shown
a dip to 3.7% in 2023-24 vs 4% in 2022-23. The notable factor remains however
that the premium collected has, in fact, risen 6%. Indian insurance penetration
also remains significantly lower than the global average of 7%.
https://www.business-standard.com/finance/insurance/irdai-annual-report-2023-24-insurance-penetration-decline-124122500470_1.html
