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Reliance Life Launches Post-sales Insurance

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Leading private insurer Reliance Life on Thursday said its representatives would meet more than 10 lakh customers by March 2013 as part of the company's new post-sales customer service initiative, the first by any insurance company in India.

Launching the new initiative, named 'Reliance Life Plus Club', the company said it would mandate an advisor or insurance agent to go back to the customer, beyond just collection of premium, with a view to maintaining a closer and long term relationship with its policyholders.

The new initiative is inspired by 'Zutto Motto' (forever more service) service at Nippon Life Insurance, Japan's leading insurer and Reliance Life's strategic partner with a 26 per cent stake.

It would make it mandatory for Reliance Life's 1.5 lakh representatives, including employees, advisors and channel partners, to visit its policyholders at least once in year.

Reliance Life is the first company in India to introduce a structured post-sales customer service platform, which involves a continued relationship between the company and its customers through personal interactions.

Through this initiative, the company targets to meet 10 lakh customers by the end of the current financial year, Reliance Life President and Executive Director Malay Ghosh told reporters here.

The company sold more than one million policies in the last fiscal 2011-12 alone, while it is estimated to have a total of more than nine million policyholders.

During these interactions, the representatives would review the customers' existing policies, understand the changes and developments in the customers' life and family since their last policy, evaluate current insurance needs and requirements, offer advice on suitable new products and its benefits.

"The fundamental focus of insurance companies in India has been more on getting new customers than servicing existing policy holders. We wish to change this with our new initiative," Ghosh said.

"We have just launched the drive. Over a period of two to three years we are targeting at least one personal interaction every year with each of our existing customer," Ghosh said.

"We expect expenses of about Rs 12 crore would be incurred this year under the initiative," he added.

The domestic industry is facing issues on both orphan policies and mis-selling of products... if an agent has to go back to a customer after the sale, the chances of mis-selling reduce dramatically," Ghosh said.