Consider a situation you pay 500 rupees for a pen which has the name “PARKER” on it. You go home and take out the pen to write. It comes as a shock to you when you see that this pen has a refill of Cello Gripper inside. You start fuming and rush to the shop and yell at the shopkeeper. The shopkeeper says that he never guaranteed you about that pen and you never asked for a guarantee, and shows the board which reads “goods once sold cannot be returned or exchanged”.
You may say that this situation is an exaggerated one but this is somewhat very similar to what happens in the insurance industry when claims of policy holders are rejected.
All the organizations in the world have a rule book which decides the actions that all the employees have to perform and which differentiates DO’s and Don’ts and insurance companies are not an exception to this. Each and every country has a regulating body to monitor and regulate the insurance companies. In India the regulating body is IRDA (Insurance Regulatory & Development Authority). As it happens in almost all businesses even this industry has got some disputes and many times in the news paper we see policy holder suing his insurance provider. Now there may be many reasons for such a thing happening and one of the factor which is widely accepted and debated is the role of the insurance agents. There have been many reports where the insurance agent has not provided the complete information or unwanted information or mis-informed the prospective customer in order to close the sales. As a result of this policy holder is at the receiving end when his claims are rejected by the insurance companies.