The Insurance Bill that was passed in the Parliament on Thursday has not only brought cheer to the industry players but also spells good news for the consumers.
There is a lot of interest among foreign insurance companies to enter the market here as it has a lot of potential for growth. With more foreign investment and expertise, new products are also likely to be launched”.
Intraday calls for today experts said “The insurance bill will hand more transparency to clients by ensuring flexibility in paying premium through installments, faster claim settlements, access to legal recourse and capping the agents’ commission.
“On the other hand, customers will have improved access to point of sales network for buying an insurance policy. Moreover, online distribution channels will help consumers make an informed decision by analyzing products based on their requirement.” explained the experts further.
“There are many ways in which the insurance bill passed by the legislature is going to be helpful for the consumer who buys it--a few of the crucial pointers include that an insurance policy cannot be challenged on any ground after three years. This means if a fraud is detected three years after the policy has been in force, insurance companies will have to pay the policyholder. Thus, this will not lead to a distress to the consumer at the moment of urgency,” said equity and Indian stock market tips experts.
“The money will help insurance companies to expand aggressively and will be beneficial for the people. It will be a big positive move for private insurers who have limited presence beyond metros and tier-1 cities. Also, the domestic firms will look to expand aggressively with more money coming. More companies are likely to enter into the insurance sector as well. This will lead to higher competition and insurance premiums may get cheaper for customers, analysts say. Insurance companies will now be able to bring innovation in products as well,” he explained.
Interestingly, the Insurance Bill has also allowed a policyholder to refuse an assignment or transfer of a policy if he reasonably feels that the said transaction was for the trading of insurance policies.