“Insurance is a subject matter of solicitation”
“Insurance is a subject matter of solicitation”
We hear this phrase at the end of every insurance advertisement. What does it mean?
It means Insurance is not a product to be sold like soap or a chocolate. It needs to be asked for. Basically it means the responsibility to understand all terms and conditions solely lies with the Buyer, since he has asked for it.
Seems scary? To safeguard Buyer from misunderanding of his needs and the product offering, IRDA mandated free look in period. This means during the free look in period of you find mismatch for the need and product offerings, you can give it back after compensating insurance company it’s costs.
If I can use some legal words, insurance company or agent can ‘Offer to sell’ but not ‘Sell’. It needs to be bought. In ‘Lean’ terminology, Insurance needs to be pulled and not pushed.