Wednesday, August 3, 2011

Follow IRDA guidelines on insurance policies

It is not unusual to see insurance-seekers as well as those who have bought policies to rely heavily on their insurance agents for advice and help regarding operational issues. Insurance companies, therefore, invest heavily in training and rewarding their agents.

On the flipside, however, there are agents who sell insurance on a part-time basis and drop out when the situation turns unfavourable, leaving policyholders in the lurch. This is especially true in the current scenario, where reduced commissions have made many to abandon their job as insurance agents.

The agent's job does not stop at selling a policy to you and delivering the documents thereafter. They are required to help you further with paying renewing premiums, arranging to get changes (like those of address) effected, exercising the switch funds option, top-ups, partial withdrawals, policy surrender as also guiding your dependants with the claims process in the event of your demise.

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If you happen to be one of those who have been left in the lurch by an agent, you need not be disheartened. Remember, your agent is just an intermediary between you and the company, and you can always go straight to your insurer to get any issue resolved. Besides, the Insurance Regulatory and Development Authority (( IRDA)) has put in place detailed guidelines for handling such 'orphan' policies.

If the agent closes shop, the insurance company is under obligation to assign an official or another agent to service the policy and offer help to such policyholders. Typically, insurers transfer the servicing of such orphaned policies to their in-house cells set up specifically for the purpose. The policyholder will not be affected much in such cases. The insurer informs them about the change, asking them to get in touch with the company directly if the need arises.

Things could be a bit complicated if your agent happens to be your bank that acts as a bancassurance agency channel for your insurer. If the bank and the company decide to sever ties, the former may stop servicing your policy. Again, it's the insurer's responsibility to take charge of such policies and its call centre will become your point of contact.

This apart, there could be a situation where you voluntarily wish to dissociate yourself from your agent due to poor quality of services. In such a case, you can bring this to the notice of your insurer who may decide to take over the servicing of the policy or assign the job to another agent. However, there is very little scope of you getting a new agent as companies usually do not accede to such requests.

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