To increase awareness and deepen insurance sector’s reach among the masses, the government must launch a ‘Jan Bima Yojna’ on the lines Jan Dhan Yojana, Insurance Regulatory and Development Authority (Irda) chairman TS Vijayan said on Monday in Mumbai.
“The government should launch a ‘Jan Bima Yojna’ in line with the ‘Jan Dhan Yojna’ to increase the level of awareness among people on the importance of insurance. There is a need for concentrated efforts to make people aware about insurance,” said Vijayan at the 16th Ficci Annual Insurance Conference.
Taking up the case for transparency in the insurance schemes, Vijayan said that the insurance companies must focus on making schemes more transparent. These companies must also take upon themselves the responsibility to make customer understand their products, he said.
Speaking on customer protection, Irda chairman said, “We are trying to put in place a regulatory mechanism to ensure customer protection. As a regulator, we have to focus only on the welfare of the customers.”
According to Vijayan, transparency of products and making it easier to comprehend for customers will help curb misselling of insurance policies.
“For an insurance company, variable cost which includes distribution and premium costs, should be more or equal to the fixed cost. It is an indication that the company is doing well”, added Vijayan.
Vijayan asked the insurance companies to comply with the rules laid down in the minimum salary Act while paying the agents. This would help the insurance companies to grow and will also help generate employment opportunities.