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Informist, Friday, Jun. 27, 2025

 

--Banking secy: Need to ensure insurance premiums in India are low 

--Banking secy: Need to ensure there is no misselling of insurance pdts 

--Banking secy: India's insurance premiums very high, unreasonable 

--Banking secy: Insurance claims need to be processed fairly, quickly

 

NEW DELHI – Given India's low insurance penetration, companies need to curb misselling and ensure that premiums are low, Department of Financial Services Secretary M. Nagaraju said Friday. According to Nagaraju, insurance, which is a sensitive financial product, should be explained thoroughly to customers before onboarding them. Often, a particular product is explained to the customer but a separate product is sold to them, the secretary said, while speaking at the signing of Central Bank of India's stake acquisation of Future Generali India Life Insurance Co. Ltd. 

 

Former chairman of the Insurance Regulatory Development Authority of India Debashish Panda as well as Finance Minister Nirmala Sitharaman have time and again spoken about the issue of misselling in India's insurance sector over the last one year. While the bancassurance model has significantly contributed to improving insurance penetration across the country, it has also raised concern about instances of misselling, Sitharaman had said at an event in October. 

 

According to Nagaraju, misselling often leads to higher premiums for customers. Separately, he said that India's insurance premiums are very high and often drive customers out of the insurance net. "Companies have to ensure that premiums are reasonable," he said. 

 

The banking secretary also said that insurance companies must ensure customers' claims are processed fairly and on a timely basis. Whether the claim is to be settled in cash or transfer, companies must ensure that customers are not unnecessarily troubled, Nagaraju said.  End

 

Reported by Priyasmita Dutta and Sagar Sen

Edited by Akul Nishant Akhoury

 

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