In a fresh message aimed at strengthening the insurance ecosystem, government officials have cautioned banks against mis-selling and urged insurance companies to adopt fair pricing and faster claims settlements.Officials noted that mis-selling of insurance products—particularly through bank-led channels—can be a concern and stressed the need for greater transparency and accountability in sales practices.
Insurers have also been asked to keep premium rates low and ensure pricing remains reasonable. Government data suggests that a number of policies are not being renewed because of high premiums, which could erode consumer trust and hurt long-term growth.
On the claims front, the government has underscored the importance of quick, hassle-free settlement. Companies must process claims fairly and with minimal queries to avoid delays.“Please ensure claims submitted are honoured without any demur—this will help increase your business,” the official emphasised.Officials believe that fostering policyholder confidence is essential for the industry’s sustained expansion.“The insurance sector can only grow if it generates trust,” the official added.The advisory comes amid efforts to widen insurance penetration and make the sector more inclusive, especially in underserved and rural areas.(Edited by : Ajay Vaishnav)
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