Contrary to popular belief, people of Indian origin realise the importance of insurance and subscribe to at least one policy that would at least provide financial relief to their family upon their death.
However, the complexity of insurance policies, incomprehensible terms and conditions and varying costs often confuse people, leading them to choose inappropriate covers.
The importance of good insurance agents or brokers cannot therefore be over-emphasised, although identifying them may often be difficult.
Honest broker
Global Financial Solutions Limited, which marked its 15th anniversary on March 5, is a good example of an organisation that combines transparency, integrity and accountability in providing insurance cover to its customers.
While it commenced business as an honest mortgage broker serving a growing list of clients of varying income groups (see separate story in this Special Section), its reputation for quality products and services has been further enhanced by its insurance division.
GFSL has been providing insurance services since its establishment in March 1999. The Company has thus far provided more than $2.5 billon insurance cover to thousands of customers.
Important questions
Managing Director Ajay Kumar said that people keen on insurance must understand in the first instance ‘Why, Who and What’ and then satisfy themselves of the best policy suited to their budget and family.
“While many people say that they need insurance, they may not be fully aware of the nuances involved. They should understand why they need an insurance policy, who are they trying to protect and what are the products that are available in the market. At GFSL, we provide an obligation-free initial consultation,” he said.
As done in the case of customers who seek mortgage loans, Mr Kumar and his insurance team assess the needs of customers on an individual, case-by-case basis, types of insurance cover suitable, ability to meet premium payments and other obligations. More importantly, they enable customers to choose the insurance company and guide them through the process.
Critical balance
Indubitably, there is no limit to the number of polices that a person can take but there would always be a limitation to the ability to pay premiums regularly. It is therefore critical that people are neither underinsured nor over-insured. Striking the right balance is a technique that requires expertise and experience. GFSL offers both.
Among the policies that are available are Life Insurance and Terminal Illness, Total and Permanent Disability, Trauma or Serious Illness, Income Protection, Mortgage Protection, Medical Insurance and Guaranteed Money Back (100% Cash Back Policy).
“We live in an uncertain world in which accidents, illness, insecurity of job, stress and trauma occur and recur. As risks increase in our life, insurance is the only way for a majority of people to secure the future of their loved ones. I have always recommended to my customers to have adequate insurance cover to financially protect their home, business and family. While death is certain for all human beings, there is also constant risk to their property and to the equity that may occur in the event of loss of life and/or income. People are also prone to illnesses that may require hospitalisation, consultation with specialists, expensive scans surgery and prolonged treatment or recovery,” he said.
Extra mile
The services of insurance do not end with writing policies for customers at the insurance company of their choice, following successful completion of procedures including medical examination where required.
The involvement of Mr Kumar and his staff are at the service of customers and equally important, their beneficiaries, when most needed.
He mentioned a number of cases in which the concerned insurer paid life insurance claims on the day they were made. Of these, the case of a Muslim client was both tragic and outstanding.
Claim settlement
Mansoor (not his real name) died unexpectedly after having paid only two premiums. His grief-stricken wife was unable to contact the insurance company that have provided life cover to the deceased. Mr Kumar and his staff visited her, arranged for proper documentation including a death certificate and filed her claim with the insurance company.
“Since we had complied with all the procedures accurately, the insurance company was able to settle the claim on the same day. The sum insured was $750,000. While there is no value to human life, the family was at least provided with the financial means to live,” he said.
Extensive coverage
Insurance products cover many other things, including funeral expense, paying off mortgage loans and credit card debts and education, to mention a few. Every cover is driven by need and affordability.
As followed by its Mortgage counterpart, the insurance division allows a thorough and comprehensive process of informing orally and in writing to customers of the insurance products and services, its duties and obligations and those of the customers, choice of insurers, the claim process and a host of other requirements. Customers would have no reason to complain that they cannot read ‘small prints,’ since the application form, rules and regulations, the agreement form and the company’s disclosure statement are all explicit and unambiguous.
