Changing Needs of Insurance - A Study with Reference to Chennai City
The Life Insurance expectations of any Insured is that, he should get something in return out of the premium. This has brought the focus on the general public regarding penetration of Endowment and other market driven policies. In a changing life style of today, the need is towards Term Insurance and Health Insurance as the respondents are not ready for long term investment and particular on low premium. The endowment premium are long term and hence lost its importance. This has resulted in lack of focus by the Uninsured public or Employed / Business class from shying away from Term Insurance Plans.
Even many of the Insurance Professionals / Insurance Industry employees / Bancassurance lack focus in insuring themselves with Term Insurance Plans. Further the regulator viz.,
IRDA does not insist on product wise information nor the Insurers furnish the details of term insurance including in their Annual reports including major companies like HDFC Standard
Life Insurance Company Limited, ICICI Prudential, Tata AIA and SBI Life Insurance Company limited. Hence it is more convenient for the insurers to reject or shy away rejecting the insurance policies for one reason or the other e.g. Diabetes is a common health problem and not disease and the Insurers conveniently decline the policies to show a window dressed claim ratio.
Similarly Health Insurance is considered as a vital need for every individual for self and his or her family which are charged with high premium at least double the premium beyond 60 years wherein the hard earned money or spent for health premium by both Public Sector and Private Sector. This hike in premium is also due to leverage given in proposal and claims on the Group policy wherein the corporate bargaining is more.