The insurance industry exists to do business with the consumer, extending protection and security to him on the occurrence of the uncertain events insured against. It is logical that it is only the consumers' satisfaction, delight and protection that will lead to the healthy growth, prosperity and longevity of the industry. Therefore, consumer protection has been one of the most important objectives of the regulator, IRDA. It has to ensure that a healthy balance is struck between the regulated and the customers of the regulated in the larger interest of the society. The regulator actually exists to regulate, develop and monitor the insurance industry's function smoothly, thus, satisfying all concerned.
Keeping customers happy is the policy of all businesses. This is even true in the case of insurance-related services since the product is intangible and its delivery is prompted by some distressing circumstances for the customer. Therefore, very sensitive, skillful and prompt response is required on the part of the insurer. Another pertinent aspect of insurance service is that the customer has to make sacrifices (i.e., pay premium) immediately while the benefits are distant and contingent. This, coupled with the flaws in concept marketing renders insurance an area highly vulnerable to disputes. This is evident from the fact that among the large number of complaints dealt with by the consumer forums, insurance companies figure most as respondents. |
