Splint International Journal Of Professionals
Year : 2014, Volume : 1, Issue : 1
First page : ( 100) Last page : ( 109)
Print ISSN : 2349-6045.

Changing face of insurance industries in slowdown: A toxic approach towards sustainability - an empirical study

Baral S.K. Dr.¹

¹Prof. & Director, Kushagra Institute of Information & Management Science (KIIMS), Cuttack, Orissa

Online published on 20 March, 2021.

Abstract

As many as 400 life insurance policies including three dozens of Life Insurance Corporation of India (LICI) are going to be withdrawn from the market from January 2014. The Insurance Regulatory Development Authority (IRDA), India’ apex insurance monitoring organization, says that there were many products sold in the market, which are becoming ‘toxic’. It is important for regulators to intervene for customers’ benefit. It has been seen in many products the amount to be paid on death of the customer was okay in some products and extremely negligible in other products. That is way the IRDA has decided that the life cover or death benefit should be at least ten times that of all products for policy holders of less than 45 years of age. If anyone is above 45 years, the life cover should be at least seven times of the premium paid. Globalisation in India has been accompanied by exponential growth, with corporate India achieving double-digit growth over the past few years. The insurance disputes are not very often resolved through mediation and reconciliation. Consumer courts are made to interpret difficult insurance laws. The tendencies of insurers of not settling the claims taking advantage of the complex legal provisions, is increasing the burden on courts. The discrepancies in the case of nominations in life and general insurance sector are leading to further litigations which is not within the reach of common man. An attempt has been made through this paper to understand such issues and challenges in context to the insurance sectors’ sustainability during slowdown period.

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Keywords

Life and Non-Life Insurance, Sustainability, Slowdown, Challenges, Product Innovation.

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