A highly common used term. For people who are not familiar, the thought would have crept their minds on why this term is repeated after every advertisement for insurance. Every Insurance company’s advertisement has this disclaimer “Insurance is a Subject Matter of Solicitation”.

What does it mean?

Insurance has to be requested or asked by the customer and not sold. As a basic requirement, it has to be willingly accepted and solicited and not to be sold.

Ideally as a customer the responsibility remains with you in understanding the insurance needs and then approaching for an insurance policy.

According to Insurance Companies, each and every insurance policy is providing you insurance against a risk, defined by you and based on your request/solicitation. Relevance in India – Insurance is a Subject Matter of Solicitation

In India, insurance is sold not solicited. Every advisor pushes the product in order to make a fat commission. Companies are also interested in increasing the profitability and sales figure rather than looking at the customer’s interest. Every Financial Advisor has to check the insurance need of the customer and help the consumer in choosing the right product.

The awareness is less among the Indian investors about Insurance when compared to other markets. Off-late a certain section of people have started understanding the importance of insurance (Life, Health, Travel etc). But still we have to go a long way in terms of understanding that basic purpose of insurance is to help us from our uncertain future not an investment.