Insurance Industry has to be ‘Customer Beware’

Many of past insurer discretionary 'advantages' are not there now. From a ‘buyer beware’ industry today we have now moved to ‘seller beware’ business. This is because we are in a promise industry and insurance has to deliver on promises made to protect consistently. Many changed rules of engagement with the customer are now contained in law, regulations and guidelines.

1.      Can insurer cancel a policy?

Section 11 (1) (xiii) of the Protection of Policyholder Regulations (2017) states: A general insurance policy shall clearly state the grounds for cancellation of the policy which in the case of a retail policy, for the insurer, can be only on the grounds of mis-representation, non-disclosure of material facts, fraud or non co-operation of the insured

2.      Can insurer refuse renewal on arbitrary grounds?

3.      Can insurer file unfair terms?

4.      Can insurer delay service or unfairly treat a customer?

5.      Can insurer refuse information and advice?

6.      Can insurer refuse copy of the survey report to the claimant insured?

7.      Can insurer delay a genuine claim or an agreed settlement?

8.      Can insurer delay payment of a court award beyond three months?

Many such questions need to be answered and new terms of conduct has to enter the mindsets and behaviour of insurers. Insurance when done with conviction to adhere to promises in a fair manner will enhance the prestige of the industry as well as its professionals.