Insurance companies must prioritise consumer welfare at all times

CONSUMER trust may be foundational to the insurance sector, but a recent survey points to the stark reality that calls for stricter regulatory supervision. According to its findings, 65 per cent of insurance policyholders in India have limited or no understanding of essential details such as benefits, exclusions or claims processes. Nearly 60 per cent of dependents don’t even know they are covered under any policy. The broad conclusion is unmistakable — a vast majority of policyholders are unaware of what they have signed up for. This even as insurance ownership is on the rise in the country. The lack of understanding stems not just from the terminology that is difficult to comprehend. The very purpose of insurance is defeated when the insurer fails in the basic duty to empower consumers with the right knowledge and tools.