Message to Insurance Advisors
From the Insurance Board of Sri Lanka
Insurance Advisors play a significant role in promoting insurance among the general public. Your contribution is crucial to the success and advancement of
the insurance industry in Sri Lanka. You are the link between the insurer and the insured. Hence, the perception and attitude of the general public towards insurance, largely depends on your professional conduct
Therefore, you are advised to pay special attention to the following facts in carrying out your duties as an Insurance Advisor.
Pre-sale;
1. Understand the needs of the customer
You need to have a proper understanding of the expectations (objectives and future financial needs) of your customer, to advise on the most appropriate insurance product. You also need to be aware of the income levels, socio-economic conditions of your customer, to advise on the most appropriate insurance coverage. The only way that you can contribute to create a satisfied customer in future, is to sell an insurance policy that fulfils the requirements of the customer, enabling him/her to receive benefits, when required.
2. Disclose all important facts to your customer
Provide all necessary information at the relevant time, when introducing an insurance policy to the customer. It is important to educate your customer, of the fact that the premium paid in respect of an insurance policy cannot be demanded, other than within the cooling-
customer on the concept of insurance. Provide true and complete information pertaining to important aspects, such as the benefits, conditions, payment of premium, fees levied by the company, exclusions, etc. and service quality of the company. Refrain from providing false information or not disclosing important facts pertaining to the policies being sold to the customer.
Insurance Board of Sri Lanka
September 2017
3. Explain the importance of disclosing true and complete information in the proposal form
Educate the customer of the legal requirement of disclosing true and material facts in the proposal form. In the case of life insurance, educate the customer with examples, the consequences of non-disclosure of material facts and furnishing of incomplete or false information, specially pertaining to the present and past medical conditions. It is your responsibility to protect your customer from the probable negative consequences such as policy cancellations, forfeiture of premiums paid and claim repudiations as a result of lapses in completing the proposal form.
4. Consider the customer's ability to continue the policy
It is your obligation to consider the customer's ability to pay the required premiums when advising on main and additional covers. Selling an unsustainable insurance policy may improve your short term performance, but would adversely affect the particular customer and insurance industry as a whole. Such customers tend to surrender their policies and it would lead to negative perceptions on insurance.
5. Ensure the privacy of customers' information
It is your duty to ensure the privacy of the personal information provided by the customer to the company. You shall ensure that such information is not revealed to a t