Insurance Marketing in India remains a sellers arena each competing the other with various combination of products. However, the awareness level and need based selling remains an elusive dream for many. The onus is on insurance education remains with Insurance Companies, Regulator and Academic Frame work from the degree level.
The larger participation of Individual can only be created with higher disposable income and assured returns on insurance products. The innovative product mix of sharing cost of insurance by the employer and return of premium with appreciation would be more attractive product than the conventional or Ulip based products. The transfer of cost of insurance to employer in Employer-Employee Scheme would thus have a meaningful binding of employee with employer and for the employer can vouch for his Insurable Interest on his employee. The employer can compute the expenses under section 30 to 36 and those of u/s 37(1) as per section 17(2)(V).
The whole of insurance products can be ULIP OR MODIFIED ULIP products, where in Ulip it is synonymous to many that investor chooses to invest in Capital Market. It can be modified where insurer for all products gives the choice of investment with investor/insured with explicit rate split of cost of insurance and Investment Choice. The Investor should have the choice of the annual report/performance report on investment made during the previous report.
With current interest rate regime in high inflationary pressure pushing up the lending rates across the board. The investor education to be undertaking how it is good to invest in debt and call money markets. The current conventional or traditional products remains opaque the tranparent portfoilio for each scheme would be highly appreciated by the investing community.
To summarise, I would like to suggest the Insurance Community and IRDA should undertake following
a) Insurance Education at All Level
b) Premium compenent should be split as Insurance Cost and Savings Element Explicitly
The const of insurance borne by employer, tax benefit to be given to both as per section 17(2)(V).
c) Modified ULIP - All plans to be converted as MODULIP as the savings element can be choosen by the insured.
Rest we shall live in the rat race of FYPI.
Regards
Prasath VR
Development Officer
Avinashi Road Branch,
LIC Of India
Coimbatore
9944081942
vr.prasath@licindia.com
prasath.licdo@gmail.com
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