Understanding Policy Discontinuance in Lic Micro Insurance: Challenges for Financial Inclusion
Year: 2024
Type: article
Study design: Observational Study
Abstract: Microinsurance plans are constantly increasing globally. Consumers are still tentative to purchase them because of the challenges involved. (Ramalingam, 2014) has pointed out that generally, micro-insurance is for people ignored by mainstream commercial and social insurance schemes, people who have not had access to appropriate products. The Life Insurance Corporation of India (LIC) has introduced several micro insurance schemes, which are tailored to address the requirements of this segment. Microinsurance programs present a few difficulties for respondents, such as inadequate communication, little assistance with enrolment and claims, and a lack of personalized guidance. Many believe their complaints go unanswered, which deters them from filing claims or renewing their insurance. challenges highlighting the need for targeted education, improved customer service, and simplified processes. Additionally, the rationale behind the policies' termination is considered. Mainly in this paper, reason for the discontinuation of policy is analyzed. Questionnaire is collected from 200 policyholders of micro insurance. The result of the analysis is presented by way of mean rank method. The study highlights that discontinuation is often linked to irregular income, perceived low benefits, and service-related issues.
Authors: B. Srividhya, R. Gopalsamy, A. Mayilmurugan
Institutions: Madurai Kamaraj University, The Madura College
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: No poverty
Open Access status: diamond
OpenAlex ID: W7167695379