“Insurance is the matter of solicitation” what this really means?
We have often seen & heard the phrase ““Insurance is the matter of solicitation” during the print, TV, Radio advertisement of companies selling insurance policies.
Ever thought why companies are mandatory using this phrase & what its meaning is?
Before going into the purpose of the use of the phrase, let us understand the meaning of the term “solicitation” & “insurance”.
According to Oxford dictionary, solicitation means “to ask for” while “insurance” is a guarantee by the insurer to the insured person to compensate the loss occurred during the insurance term as per mutual contract / agreement
According to the India’s Insurance Regulator “Insurance Regulatory and Development Authority” (IRDA), “Insurance” is not a ready-made product, service or entity which can be consumed directly by the customers. To avail an insurance policy, customers have to discuss their requirement with an insurance advisor regarding expert suggestions and professional advice who will suggest the right insurance products and services specially tailored or customized to meet an individual’s requirement.
This implies that Customer “is asking for” the right policy. Hence, the term “Solicitation” is being used with the insurance.
Insurance can always be supplied only on demand and not on compulsion.But, in India the situation is opposite. Here instead of demanding, customer has been approached to buy the policy.