Insurance is a Subject Matter of Solicitation — A Common term in Insurance

Insur­ance is a Sub­ject Mat­ter of Solic­i­ta­tion - A highly com­mon used term in the world of insur­ance. For peo­ple who are not famil­iar, the thought would have crept their minds on why this term is repeated after every adver­tise­ment for insur­ance. Every Insur­ance company’s adver­tise­ment has this dis­claimer “Insur­ance is a Sub­ject Mat­ter of Solicitation”.

Insur­ance is a Sub­ject Mat­ter of Solic­i­ta­tion — What does it mean?

Insur­ance has to be requested or asked by the cus­tomer and not sold. As a basic require­ment of insur­ance, it has to be will­ingly accepted and solicited and not to be sold.

Ide­ally as a cus­tomer the respon­si­bil­ity remains with you in under­stand­ing the insur­ance needs and then approach­ing an insur­ance com­pany for an insur­ance pol­icy. Insur­ance has to be given based on require­ment rather as a compulsion.

Accord­ing to Insur­ance Com­pa­nies, each and every insur­ance pol­icy is pro­vid­ing you insur­ance against a risk, defined by you and based on your request/solicitation.

Rel­e­vance in India — Insur­ance is a Sub­ject Mat­ter of Solicitation

In India, insur­ance is sold not solicited. Every Insur­ance advi­sor pushes the prod­uct in order to make a fat com­mis­sion. Insur­ance Com­pa­nies are also inter­ested in increas­ing the prof­itabil­ity and sales fig­ure rather than look­ing at the customer’s inter­est. Every Finan­cial Advi­sor has to check the insur­ance need of the cus­tomer and help the con­sumer in choos­ing the right product.

The aware­ness is less among the Indian investors about Insur­ance when com­pared to other mar­kets. Off-late a cer­tain sec­tion of peo­ple have started under­stand­ing the impor­tance of insur­ance (Life, Health, Travel etc).  But still we have to go a long way in terms of under­stand­ing that basic pur­pose of insur­ance is to help us from our uncer­tain future not an investment.

Related posts:

1. Term Insur­ance Pol­icy – Is it a good option?
2. Term Insur­ance — What is it all about?
3. Uni­ver­sal Life Plan – A new offer­ing by life insur­ance companies
4. Intro­duc­tion to Life Insur­ance basics
5. Life Insur­ance Terms – Every­one should know