Problem with Insurance companies

The Prime Minister had tried to first go Less Paperwork working, when he removed the need for attestation for every document by institutions for completion of some process. The PM had advised that a self attested copy is sufficient, and the person could verify the originals in personal meeting.

This now has been twisted by many, especially the Insurance sector companies. Either on completion of the term of the policy, or if the policy holder wishes to surrender the policy, not only a half dozen self attested documents (including the original policy document) are required to be submitted, but the policy holder needs to be present in person at ‘Selected branches’ of the Insurance company.

If any of the Senior citizens wishes to surrender one’s policy to meet the health expenses, the person is denied the chance as the requirement of visiting ‘One of the selected branches’ by the policy holder, is not met. Even if the customer requests the company to send it’s representative with formats for the documents to be submitted and agrees to reimburse the expenses for such visit(s), it is denied.

But the same Insurance company shall send it’s representative to the residence of the policy holder, if he/she decides to take a fresh policy, and these visits can be a dozen times, till the fresh policy is taken.

Incidentally, no insurance company has taken steps to update their records to include the details like PAN number, Aadhar number, Bank account, mobile number, email address, etc for the existing policy holders. The related government agencies are sleeping over it. They shall wake up only when a major problem breaks out.

And unless the details are updated, it is the customer, who shall always be the loser.

And if the law is made to make the Insurance companies update their customer records, as usual, these companies shall throw the ball in customer’s court6 and make the customer responsible for the compliance, when documents received from the customer could get rejected by saying “Signature does not tally” which is the current fashion for avoiding the work to be done.

Can some Insurance sector expert throw some light to suggest a remedy to get the records updated without harassing the existing customers? more  

Documents required at the time of surrender are Original Policy, PAN card, Aadhar car and cancelled cheque. Provision is already there, Sr. Citizens and handicaps can call the branch manager at home. more  
Mr Sharma, your point is well taken. If IRDA wants the policy holder to remain present, it does NOT specify the presence at the Insurance company’s office. If one visits the Insurance office, then one is asked many documents. Even if one has not brought a copy of one document, then more visits are required. Therefore, IRDA should add that in case of Senior Citizens, the Insurance companies should send their representatives at the address specified by the policy holder, along with formats for all the documents which are required to be filled. The documents required from the policy holders shall, in most cases, available at his/her residence, so one visit from the representative of the company shall resolve the issue, for which the Insurance company could charge the policy holder appropriately (which must be revealed to the policy holder in advance, before the representative makes a visit) more  
In most of the insurance companies including LIC all the records can be updated by the insured himself by creating his/her own account and logging into his/her policy. Even, if you have given these records to the company, they are updated and you get reminders on SMS and e-mail too. Yes for surrender of policy visiting branch is a pain. This is the rule given by IRDA due to mass surrender of policies. Agents are responsible for it. Agents started criticising the previous policy of another insurer and convince client to surrender it and take a new better policy from him. Hence, IRDA had to come out with the rule, that for surrender insured should visit the designate branch and personally inform branch manager that he wants to surrender the policy for a particular reason and not being convinced by another agent. This need to be rectified. Instead of visit, BM can phone up the insured and get convinced over phone. more  
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