In the insurance world, everyone talks about big cities and big sales. But the real measure of the industry's fairness is how it treats people in smaller, Tier 2 cities and, most importantly, in the tough-to-reach hilly areas. These places, such as Uttarakhand, with an insurance penetration of 1.9% as compared to the average 3.7% of the country, are key to India's goal of insuring everyone, yet they show a clear and painful gap between what the insurance company promises and what the policyholder actually gets when they need help. For example, Uttarakhand.

The Unique Hurdles of Hilly Terrain

Regions like the mountains of the Himalayan belt have unique problems that make things much harder for policyholders. It’s more than just slow internet. The physical distance between a person in a rural village and the insurance office can turn simple paperwork into a huge struggle. Claim adjusters typically work from large urban centres. They may not be aware of some of the challenges faced by individuals living in rural/remote regions with regard to verifying land ownership and/or travelling to/from some remote Hospitals. Because of this, agents are opening themselves up to significant potential liability due to misrepresentation and/or lack of attention to detail by the agents. There is an expectation of reliability from the agent, and the negative consequences of an agent letting down an individual when something goes wrong are compounded by the pain that the individual has experienced due to the inadequate level of service provided by the agent and the unfair denial of a claim.

Across these regional markets, groups working for policyholders constantly deal with cases where people, after paying premiums for years, face unfair roadblocks when they try to claim their benefits. The problems outlined show a huge failure of insurance companies to meet their commitment to their policyholders to provide protection from premature death through the sale of a life insurance policy. When the policyholder is in need of help from the claims department, all the reasons for purchasing a life insurance policy are no longer valid. Solutions for the challenges presented can only occur if the insurance companies show compassion for their policyholders during the claims process, as well as hold their claims representatives accountable to provide service that meets the public’s expectations. Independent advocates have proven that you can achieve 'justice' in the life insurance marketplace by helping the policyholder get back money and benefits that they were owed, but were wrongfully denied by claims representatives of the insurance companies.

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National Policy and Digital Solutions

The road ahead needs two things: strong national rules and smart use of digital tools. Recent national policy changes have been good, focusing on making products simpler and boosting oversight. But these rules must genuinely help people on the ground.

Digital progress shouldn't just be about collecting premiums faster. Its most important job is to build digital trust and make it easier for people to complain and get their claims sorted.

For regional markets, this means using a mix of technology and people. Policyholders require user-friendly online resources to submit documentation and monitor their complaint progress from a distance. Local representatives are also critical in providing clarification about complicated coverage items to non-technology-savvy customers, as well as in confirming that claim payments are equitable to all policyholders. A successful combination of online access through technology and local support systems will ensure that technology will serve the best interests of policyholders.

A Call for True Accountability

The main challenge for the insurance industry in these regional areas isn't a lack of resources, but a lack of right intention and accountability. It is not enough to just sell a policy; the industry must stand by the guarantee of security it offers. The repeated success in resolving cases in tough markets sends a clear message: when dedicated help is available, justice can be served, and trust can slowly be restored.

The future success of insurance across all of India, especially in the remote and hilly areas, depends entirely on this principle. Industry leaders and regulators must view a policyholder's struggle not just as a small error, but as a sign of a massive "trust deficit" that must be actively closed. Only by doing this can the national dream of 'Insurance for All' become a fair and genuine reality for everyone.

About The Author

Deepak Uniyal, CEO and Co-founder of Insurance Samadhan, has over 25 years of experience in various positions within the insurance industry, as well as experience in logistics. He was previously employed by FedEx as a senior leader. In addition to his extensive experience, Deepak is also known for his high level of ethical conduct, his commitment to being an advocate for customers and leading with a strong adherence to problem solving principles.