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Five Problems to Be Earnestly Solved in China's Insurance Market
In recent years, insurance has been recognized and accepted by more and more Chinese people. But the disorder in insurance market should not be neglected.
According to a survey conducted in Beijing last year, 48.4 percent of the citizens purchased insurance, but in the meanwhile, various disputes between insurance buyers and companies are on the increase. As announced by China Consumers' Association, last year saw insurance disputes listed among the top ten complaining issues. And recent years have seen a growing tendency in disputes of suchlikes.
Experts say that they've seen five major occurrences in China's insurance market.
---- Some insurance brokers talk big of the insurance functions, they do not give an honest description about the insurance and conceal some contents concerning obligations that buyers do not have to perform in order to lure them to buy it. First, they adopt the way of persuading acquaintances to purchase the insurance, and secondly, they exaggerate the functions of insurance, grant blindly promises to buyers and brag about insurance coverage and purposely gloss over the possible defects with an ingratiating attitude.
---- Most buyers do not peruse the detailed terms and articles in the contract. They are not clear about their rights and obligations. So it's easy to entail losses of interests and rights for themselves.
---- Some buyers do not select a suitable type of insurance or just favor some certain sort, thus resulting in the incomplete guarantee in indemnification or repetition in buying the same sort of insurance.
---- It is hard for insurance buyers to claim for compensations nor is it efficient for insurance companies to handle compensation cases. Many buyers say that they did not know the regulations at all when they were purchasing the insurance, and they came to know the implications in the contract when they began to read it carefully. This has landed the buyers in an unfavorable condition.
---- It is also difficult to rescind insurance. Dispute over the quitting of insurance is really a headache in China. Some insurance brokers do not want their clients to know the ten-day interim for hesitation after the signing of the contract. For during the ten days, insurance companies should refund fully to buyers and allow them to quit the insurance. For that the brokers intentionally delay the time to hand over contracts to buyers until the deadline for the hesitation period was almost over, thus leaving buyers no time to claim for the full payment.
In addition, there are six misconceptions among insurance purchasers according to some sources. Some people think that it is quite enough to buy insurance for their children only and would rather invest heavily in cars, houses than themselves. Quite a few people are to be pulled around by others, they wouldn't buy any insurance if others do not. Some usually make a comparison of insurance with the deposit savings. So since there's no return, there's no investment in insurance, and still some do not read carefully about the insurance terms but give a blind faith in their acquaintances.
By PD Online staff member Li Yan
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