SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has called upon J&K Bank to revise its Bancassurance agreement with Bajaj Allianz insurance company after duly incorporating provisions deemed necessary for safeguarding the interests of consumers.
In a statement, the apex industrial chamber regretted that the current agreement looked more to serve the interests of the Bank and the Insurance Company leaving the consumers to lurch at the time of need.
“Whereas J&K Bank gains additional revenue by selling insurance products of the Bajaj Allianz to its customers, the insurance company has the benefit of selling these products to a wider base of customers at one place without much of its efforts,” the FCIK observed, adding, “Neither the bank nor the company takes due care of the financial protection needed by the customers.”
FCIK reminded J&K Bank authorities of their responsibilities in guiding their customers in the selection of suitable insurance products and services at the most competitive prices across insurance players keeping in consideration that their customers trusted them while going with their arrangement.
While commenting on the performance and services of Bajaj Allianz, FCIK regretted that the apex body received regular complaints from its constituent associations and members regarding delayed and unreasonable settlements.
“The latest victim of the company’s apathy has been reported to be an educated young man Tariq Hassan of M/s Zaitoon Oil Millsat industrial growth centre Lassipora which was unfortunately gutted in a devastating fire incident in August last year,” the Chamber said.
According to Sarwar Malik, the General Secretary of the Industrial Association Lassipora, there has been almost a total loss to the factory building, plant and machinery, raw materials and finished goods. He informed that the unit was financed by J&K Bank Lassipora Branch which also facilitated its insurance through Bajaj Allianz for a total amount of 72 lacs. The Association regretted that despite the actual loss of 53 lacs, the insurance company was adamant about settling it at just 17.44 lacs on the basis of an unreasonable assessment made by their appointed surveyor.
“No action on the written request made by the association on 5th January for re-assessment of the claim has so far been taken by the company which speaks volumes about their seriousness and approach,” Malik informed. “On the other hand, the frustration of the young entrepreneur was brewing day by day with piling up of his debt and unprecedented delay in restarting of his business.”
FCIK has sought the intervention of the Managing Director and CEO of J&K Bank in the instant case besides revisiting the agreement with Bajaj Allianz in order to ensure customer customer-friendly approach. The renewed agreement should emphasize on settlement of claims in a time-bound manner not exceeding one month beyond which the company should be held responsible for paying the establishment cost of the customers including bank interest.
FCIK has also urged the authorities of Bajaj Allianz to revamp its functionaries involved in the settlement if the company wanted the large customer base to continue their relations with it.
FCIK urges J&K Bank to revise Bancassurance agreement with Bajaj Allianz
