Insurance helps you in many critical situations in all your journey of life. You face ups and downs in life, but its good when you have support in the tough times.
The Insurance industry is working to lessen the sudden
inconveniences and misfortunes of human life. In the
Author- Jack Smith
current era, at one side insurance is working as a supporter
to individual and on the other side people are getting
Every insurance-policy is to support individuals in the hard
times. But, in some cases the insurance market has taken
the advantage of the compulsive situation of the
customers and their innocence (for example, customers
buying policies for security).
Peter Kell, Deputy Chairman of the ASIC, announced that
deep evaluation is going on by ASIC, on the industry
working data of the last year. As the working area of
Insurance industry is in Australian markets, is as well as in
abroad. So, keen study of existing policies is going on to
ensure identification, also in the context of the future.
Particularly the most discussed areas are home, add-on and
consumer credit insurance etc. The above mentioned
policies are reviewed on a priority basis, which is to be
handled within ASIC's Financial System Inquiry.
Talking about the home cover section, the current
challenges associated with it, is in review. In the case of
bushfires the customers are totally disappointed, as they
are unable to rebuild their homes.
ASIC has stressed upon the corrections due to non-
transparency and miscommunication regarding the
information and details of the product. Due to lack of
information and partial understanding of customers, the
fraud issues take place. This is a common problem in all
cases like general, health and property cover etc.
Add-on insurance has also supported the complaint list.
Hence a special emphasis on add on insurances were made.
The false advertising and inappropriate conduct is a phrase
which clears the story of sale and complaint of add-on
insurance. ASIC has announced to increase vigilance in
regard to add on cover. Add-on policies are not a negative
sale, but the style of selling is annoying. One should make
add-on sales, but the deal should be advantageous to the
concerned customer, also the terms and conditions and the
add-on benefits should be informed. Inquiries are
conducted by ASIC for add-on insurance sold through car
yards and overseas-insurance. It is expected that such
attempts will filter the hazardous processes associated
with add-on insurance. In future, complaint and faulty in
case of complaint, will be followed by appropriate actions.
The report, published by ASIC last year was shocking in
relation to consumer credit insurance. The inquiry report
stating that many consumers were unaware of the product
purchased (consumer credit insurance). Or customers were
pressured and harassed by sales staff to do so; it was a
shameful act to be gulped down. Further a report in
relation to consumer credit insurance, sales practices in
the first half of this year is expected to be released.
May such products are also listed in the recommendation
list by ASIC. This attempt by ASIC, is to create a pollution
free insurance zone. The filtration will support the life of
customers and will help customers in regaining trust for