FCIK urges J&K Bank to revise Bancassurance agreement with Bajaj Allianz

Srinagar, Mar 3:  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.” observed FCIK, adding that “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 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 Mills at the industrial growth centre Lassipora which was unfortunately gutted in a devastating fire incident in August last year.

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 Rs 72 lakh. The Association regretted that despite the actual loss of Rs 53 lakh, the insurance company was adamant about settling it at just Rs 17.44 lakh 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,” informed Malik.

“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” informed Malik.

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 to ensure customer customer-friendly approach. The renewed agreement should emphasise 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.