Yes, We are 130 crores in population and ranking 7th in global economy but still we are not insured or adequately insured?

By Nishant Mehta, Updated on August 3, 2019
MBA (Finance), PGP in Management, PGD in Advance Financial Planning and Wealth Management, B.A (Hons) Mathematics,  Licentiate form Insurance Institute of India, Certified Retirement Planner & Certified Mutual Fund Distributor

Today first time am sharing my thoughts on the above mentioned topic. Hope you all will spare some time for this.

While working in this industry, have observed that many of the people are not insured or adequately insured and also not willing to invest in different kind of Insurance (which are must for them) available in the Market. I think it’s a VERY BIG mistake towards their life and financial goals.

Why this is happening?

Here are some common points on which customer and Insurers leads this trouble.

As a Customer

1). Incomplete knowledge: Many of the people are not aware about the Insurance mechanism. Why it is important in their financial goals. This leads customers to avoid this financial tool which help them in their financial protection on unforeseen situation.

2). Profit Expectation: It’s a common perception that if we are investing money in any financial instrument then will expect some profit or return. Insurance itself providing you the same as a return or I will say better then what you have invested in insurance and what you will get at the unforeseen situation.

3). Faith: If someone is willing to buy an Insurance, the first thing comes to his mind is “Claim milega ya nahi”. My answer is “Haa Bhai Milega Milega” but provided all the details (material facts) mentioned at the time of availing insurance need to be clear and accurate. And if you are not providing accurate details or false details at that time then might be “Kuch na milega”. So there need to be a faith between customer and Insurer and it’s a responsibility of both sharing complete details with each other.

4). Not starting Early: People considered Insurance as a secondary requirement instead of necessary requirement. Hence most of the people start investing in insurance after facing any losses. Hence it’s better to start early on a wise time with all the required insurances.

As a Insurer

1). Awareness: Instead of achieving sales target its better for the Insurers to spread awareness regarding the necessity of insurance in people’s life. This will boost the confidence of customers and bring them to invest in their financial protection tool.

2). Tell the Truth: Always share the complete and clear details to customers while accepting any proposal. As per my knowledge this one was the biggest point due to which the Indian insurance market and Insurance companies are suffering “Lack of trust between Insured and Insurer”.

3). Sell which is required: Always provide policies to the customers which are required or actually beneficial for them instead of those which will give you more incentive. My opinion is, this will slowly and steadily boost the sales of an Insured along with a strong relationship.

4). Be planner not seller: Insurance companies need to become a planner for their customers not a seller who is selling a policies. You need to understand that you are protecting someone’s future which is unpredictable hence as a planner you will do much better for them and for you self also.

There are more reason’s due to which people are not showing keen interest in their financial protection.

My Learning: Always provide correct and clear knowledge of any insurance if you know. Make people aware about all the benefits of insurance and how this mechanism will help them in their financial goals.

Here is the End, Request you all to please share your recommendations/suggestions on the post in comments. Whatever you want to say on this please share, this will help us to learn from our mistakes.