The New Nation - Internet Edition

Dr Mahbubul Alam

It is misfortune for us that people have negative attitude towards insurance. There are some reasons behind. First and foremost lack of Insurance knowledge/ awareness, religious issue coupled with social practices has made insurance a debatable subject to many. Here Insurance is mandatory by law like to open a Letter of Credit (L/C) need Marine Insurance, to mortgage a property Bank asked for Insurance, to ply vehicle in a public place need at least Motor third party insurance.

Due to lack of insurance awareness people always try to avoid Insurance. Although at first paying business insurance premiums might seem like a burden, the real question is can you afford not to have adequate coverage? You personally cannot control or eliminate every potential risk that threatens your livelihood. But only insurance can provide the protection against these riskst if you carry the right kinds of business insurance for business.

When took an insurance coverage, they don't think about the risk, so to minimized premium insured with minimum risk, because they feel insurance is just only a paper to go through a business process. But when a loss occurred they suffer a lot and realize the necessitate of insurance, but it is too late to think? And as result both parties' insured and insurer are in trouble. In one hand insured feel that they have taken an insurance so Insurer should compensate their loss on the other hand Insurer find that the risk is not covered under the policy condition. When Insured lodged a claim to the insurance company for the loss and as because they do not take the sufficient coverage, the insurer repudiated the claim. The biggest problem with claims that Policyholders who fail to read and abide by the conditions in their policy documents have only themselves to blame when insurance companies reject their claims. Many of the people who unsuccessfully complained to insured - have not read the policy document, they will only discover when they claim what they should have been doing. The insurer has every right to reject any claim if the insured do not comply with the conditions. So my suggestion to people who want to purchase a Insurance Policy please find the following answer:

v Are you insuring to the right amount?

v Is this proper coverage?

v Are you OK with the coverage that you're buying?

v What are your deductibles?

v From which company you are buying the policy?

v What is the Credit Rating of Insurance Company?

v Previous and present insurance Claim paying experience?

Due to lack of knowledge they think insurance company deprive them and publicly advertise the insurance company does not give the claim. Like these type of advertisement Insurance suffer a lot of hassle and the negative attitude towards insurance increase.

Unfortunately nowadays there is a series report published by a vested quarter, which is tarnishing the images of insurance industries. The Company, which is actually liable for the misconduct or breach of code of conduct of Insurance business, obviously may impose the embargo of doing business but very causerie it should be stabilized that there is no hassle for the company who maintain their business properly.

So what I feel to avoid the problems it is the prime needs to make the insurance awareness to the mass people. And this is not only the part of Insurance Company only. Nationally we may think for it. Awareness should be start from school level, that what is Insurance, why should we need insurance etc. It is a positive progress that the present Government is conscious regarding this matter and meanwhile the cabinet already approved IRA & IRO.

We don't know actually what laws & regulations are included in the new Ordinance but one think we just seek revolution in the industry. As per the ordinances, the Authority will have a five-member team led by Chairman. In this selection of members are important otherwise what will happen "Old wine in a new Bottle".