SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has called upon JK Bank to revise its Bancassurance agreement with Bajaj Allianz insurance company, incorporating provisions necessary to safeguard consumer interests.
In a statement, the industrial chamber regretted that the current agreement seemed to prioritise the interests of the Bank and the Insurance Company, leaving consumers vulnerable in times of need.
“While JK Bank gains additional revenue by selling Bajaj Allianz insurance products to its customers, the insurance company benefits from selling products to a wider customer base at one place without significant effort,” observed FCIK. It added, “Neither the bank nor the company adequately addresses the financial protection needs of the customers.”
FCIK reminded JK Bank authorities of their responsibility to guide customers in selecting suitable insurance products across competitive prices from various insurance players, considering that customers trust them.
Regarding Bajaj Allianz’s performance, FCIK expressed regret over receiving regular complaints from its associations and members regarding delayed and unreasonable settlements.
“The latest reported victim of the company’s negligence is Tariq Hassan of M/s Zaitoon Oil Mills at the industrial growth centre Lassipora, which was gutted in a fire incident last August,” the statement reads.
Sarwar Malik, General Secretary of the Industrial Association Lassipora, reported significant losses to the factory building, machinery, raw material, and finished goods. Despite an actual loss of Rs 53 lacs, the insurance company insisted on settling the claim at just Rs 17.44 Lakhs based on an unreasonable assessment by their surveyor.
FCIK has sought the intervention of the Managing Director and CEO of JK Bank and called for revisiting the agreement with Bajaj Allianz to ensure a customer-friendly approach. “The renewed agreement should prioritise settling claims within a month, beyond which the company should cover customer establishment costs, including bank interest,” it reads.
FCIK also urged Bajaj Allianz authorities to revamp their settlement functionaries if they wish to retain their large customer base.
