A compilation of the internal assessments made by the four general insurers is a virtual admission that its systems pertaining to underwriting and settlement of claims suffer from serious lacunae.

The deficiencies identified by the insurers range from lapses in underwriting, defective selling and incomplete information to poor customer service and lackadaisical approach to surveys.

The companies have conceded that their workforce often granted cover inadmissible under the tariff, and even issued the wrong class of policies, etc.

A large number of officers lacked the knowledge of particular classes of insurance, and did not update themselves on the latest tariffs, circulars, etc. At times, they even flouted the tariffs for "business gains".

Also, the insurers have admitted, development officers lacked a basic understanding of the needs of customers, and would much rather wait for a claim to arise than help with pre-emptive action.

Some of them ended up charging incorrect rates out of improper knowledge of the product, or because they were unable to understand the risk properly or failed to convince the client. Others lacked the technical knowledge to compute the right premium or refund amount. Yet others worked only when competition reared its face, intra-office or otherwise.

There were also problems of improper wording of policies, failure to conduct proper checks at the time of signing policies and to understand the legal implications of a policy.

The insurers have also admitted to delays in issuing policies, refund of premium on cancellation or adjustment.

These could stem from red-tapism in forwarding and processing of papers, lack of coordination at the operating office level, or simply lack of proper stationery, policy stamps, computer malfunctioning, etc.

Officers have also been found to have made false promises to the insured about the time-limit within which claims could be settled, without explaining the actual process involved such as obtaining permissions from higher offices because of complexities in the policy provisions, acceptance limits, etc.