Abstract :
Early lapse of life insurance policies is one of the
serious issues in the pace of Life Insurance market. In recent
timesIRDA report witnesses twenty percentages of lapsed
policies in the first year of the initiation of the ULIP. After
the emergence of private sector in India, Life Insurance
Industry had a significant growth that paves the way for
competition as well as introduction of innovative policies
with varieties of features. Early lapsation costs the Life
insurer the major part of the first year’s premium, high
degree of financial losses for policyholders and general
dissatisfaction over Unit Linked Policies. As half million
people needs to be covered with insurance in India, lapsation
and existing policy holders’ dissatisfaction over products will
make difficult for the insurance companies to pull the
customers towards Life Insurance. This paper aims to
suggest new strategies to reduce early lapsation and to
enhance the growth of Life Insurance Sector.
Keyword :
ULIP, Lapsation, Private sector, Dissatisfaction