So much needs to be done to make the insurance business more credible. For starters, IRDA needs to set up a fund to protect its policyholders. Insurance companies should take responsibility and settle claims for their customers promptly.
At the ending of the ads that you see on tv for the insurance companies like Allstate and Geico, you can see the phrase; “insurance is a subject matter of solicitation.” What does that even mean? Basically, the insurance has to be asked for by the customer, not sold to a customer. Is this true in real life? Perhaps only in the case of motor insurance where we actually do ask for insurance, because without it you can’t even register your vehicle, and it is illegal to drive without it. You need at least a third-party policy. So if you are a law abiding citizen, please get some insurance for your car!
There are two basic areas of interest for choosing your insurance: the credibility of the insurance and the record of prompt settlement of insurance claims.
First, you need to make sure that the company is credible. Research them to the tee, making sure that it is safe to rely on what they say, and that you can get your money back when you do need your insurance for that accident you got in. A few years ago, I don’t think I would be asking these questions at all. With the opening of private insurance companies, you are suddenly bombarded with a billion companies in the private sector, providing both life and general insurance. Competition is increased within the sector and you are left baffled at which to choose. It makes it ten times harder to choose a safe company that will stay true to its word and will not sink beneath you.
How does the Insurance Regulatory Development Authority (IRDA) play into all of this? The guidelines they set for all of the of the insurance companies and to protect the interests of the policyholders. Can they really be trusted though? Will they really honor you and the commitments that your insurance company made? With past experience, I would so I am not too inspired, so I am trying to find a way out of this.
Secondly, you don’t really need to worry that your insurance company is going to take forever to file your claim. The faster the better. You don’t need to pay that 8K for the person you rear-ended, that’s the job for you Allstate. I sometimes feel like the insurance company enjoys delaying my claim. What possible reason could they have for that, while I struggle with paying the bills and become mentally drained for something I shouldn’t even worry about. However, what kind of insurance company exclaims the fact that they are slow at filing claims? Be careful and actually research. Ask people and get ratings for the company, the customers won’t lie.
The two steps to choosing the right insurance company might place a heavy burden on the companies for the short term, but they do need to develop trust and confidence for their customers. This will help create a healthy market and more satisfied customers, and keeping with their motto: “insurance is a subject matter of solicitation.”