(a) whether the consumers in the country are d ssatisfied with the way their claims are serviced by the public
sector insurance companies ;
(b) if so, `he facts and the details thereof ;
(c) whether the faith of consumers towards public sector insurance companies have totally eroded and there
is a decline in constmer rating ;
(d) if so, the facts thereof; and
(e) the steps taken by the Government to tone up the functioning of the various public sector insurance companies
in the country?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a) & (b) : In respect of servicing of claims by public sector general insurance companies, the General Insurers` (Public
Sector) Association of Incte (GIPSA) has reported that during the year 2004-05, claims settlement ratio of non-suit claims
was at 90.29%. In respect of Life Insurance Corporation of India (LIC), the claim settlement ratio was at 99,86% in 2004-05.
It is the endeavour of all the public sector insurance companies to increase the claim settlement ratio and reduce delays;
in claim settlement so as to provide maximum satisfaction to its customers.
(c) & (d): The consumer faith in the GiPSA Companies is manifested by the fact that the gross direct premium income has
grown by 7.01% in 2005-06. National Insurance Company Limited (NICL) and New India Assurance Company Limited
(NIACL) lave been jointly awarded `CNBC Awaaz award` for most preferred non-life insurance companies. LIC has also
been awarded as the `No.1 Service EJrand` consecutively for the lasl three years and considered as `preferred insurance
company1 in India. LIC has also won the NDTV Profit `Business Leader in Insurance1 Award in 2006. .
(e): The Government has taken steps to monitor performance of the companies by way of Letter of Intent (LOI) that has
been signed with all`public sector insurance companies, which inter-alia includes compliance of targets in settlement of
claims and a great emphasis on Customer Relations Management (CRM).