issue is very common, but I think that allowing such stereotyped work style could prove counter-productive in the business of extending financial support and protection when it is needed the most.
Acquiring customers through aggressive sales strategies and brand-building exercise is exciting; but if a company really wants to influence customers and create a future market for itself, it has to concentrate on deliverables like claim settlement to create a relationship of trust with the market.
Only such positive experience can infuse confidence in the customers and earn huge loyalty. About two decades back, when I was marketing head of LIC at its divisional office 1 at New Delhi, the senior divisional manager once took me to the window of his office in a multistory building at Connaught Place and, looking down at the busy street, he asked: “What must be done to make all these people believe that employees in this magnificent building of LIC will take care of their family if, on a fateful day, any one of them failed to return home.”
I could guess what was in his mind and resolved to devote all my energy and managerial skill in enhancing efficiency of claim settlement operations to the level of being best in the country.
Claim settlement often requires bold decisions. The real test of claim settlement procedure is speed. In most of the cases, it is observed that the sum assured is finally paid but only after causing acrimony. In such cases, companies lose money as well as credibility. I strongly believe that death claim settlement procedure implies enabling the claimants to complete the documentation.
Only a hassle-free process can make the market believe in life insurance as an essential financial instrument. Even if it is decided to repudiate a claim, the action must be completed promptly and courteously.
Once during my visit to an LIC branch, I asked the HoD of the claims department: “What do you do to expedite settlement?” He comfortably replied, “I immediately write letters calling for requirement and forward copies to the divisional office.”
This bureaucratic mindset was the root cause of