January to March every year is quite busy for all insurers, particularly life insurers. The sale of life insurance policies is at peak during this period. This indicates that people buy life insurance, mostly for getting tax exemption rather than covering their life. In India still, most of the people are uninsured and underinsured. Under insurance is more serious than non-insurance. People take insurance as a protective measure which helps them during times of adversity. Having insurance does not serve any purpose as at the time of need, as people are left with a paltry sum of money which is not sufficient to cover the requirement.
Large number of intermediaries sell products to fulfill their quota of business without keeping in mind the needs and requirements of the customers. This is crime in itself and intermediaries who are found violating these norms should be penalised heavily. By selling products without need they play with the life of the insured as the insured thinks that they have purchased life insurance and have fulfilled their duty. The insurance companies should properly train their intermediaries and make them understand that selling without need is hampering the image of the company since at the time of need; the insurance company would be able to compensate only a small amount of loss/requirement.
After the relinquishing of the mandatory requirement of licensing by IRDAI and leaving the process on insurance companies to train and recruit agents, the whole process of education has been largely diluted. Now, the insurance companies are busy recruiting the agent and getting new business. As the agents are not trained properly, they indulge in misselling and somehow getting the business keeping all ethics of insurance at bay.
We must understand that education and training are the backbone for development and thriving of a vibrant insurance industry. Diluting the basic tenets of the education system will damage the industry in the long term. Hopefully, IRDAI and insurance councils would look into this matter seriously and take a concrete step to prevent degeneration of the education and training system in the insurance industry in India.
