The Insurance Sector - How can they change???

1)      Lock in Period

There is always a lock in period for any policy which is taken. So if u happen to die or injure yourself at that time, there is no claim.

Solution: This lock in period could be removed and instead people could be given the option of getting only what they give for a certain period of time, say 6 months. That way atleast the money they have invested will not be lost for the time.

 

2)      Pet Life Insurance

The Pet life insurance is not a very popular concept in India. Only 3 providers are there. Also they do not cover the vaccinations and neutering which are normal in every dog’s life.

Solution: More coupled options such as ‘Owner and pet’ life insurance policies.

 

3)      ULIP(Unit linked Investment Plans)

In ULIPS, the risk of the principal getting eroded is high as there is investment in Mutual Funds and the like.

Solution: This can be avoided by investing only in FDs or RDs.

 

4)      Automobile Life Insurance

The depreciation value considered is very high. The full value of the asset is not considered and the Claim is low.

Solution: The depreciation value has to be revised.

 

5)      People with bad medical record

Normally people with bad health or bad medical record are not given life insurance easily. Eg. Diabetes and Heart Attacks

Solution: They should be given a longer period of investment and a larger amount, but they should be allowed to have life insurance policies.

 

6)      Life insurance can be an asset only after death, till then it is only an expense.

Since a person is investing so much money in a life insurance policy, they should be given medical benefits also with the life insurance policies.