Know your rights as a policyholder

With the emergency of a lively Indian insurance market since the liberalization in 2000, quite naturally the number of insurance consumer complaints has also grown.

If you are a policyholder who is unsatisfied with your relationship with your insurer, it is important that you know your rights.

The first step is always to contact the insurance company. They will have customer grievance redressal procedures. Some of them, such as Bharti AXA, have the procedure published on their website.

If you are still not happy with the outcome, you can contact Insurance Regulatory and Development Authority (IRDA). One of the main purposes of the government insurance regulator is to protect consumers. Among the rights that IRDA stresses insurance customers should know are:

• A claim has to be paid or disputed by the insurance company, giving relevant reasons within 30 days of receiving all relevant documents.
• The insurer shall furnish the prospect, a copy of the proposal form, free of charge, within 30 days of the acceptance of a proposal.
• Proposals shall be processed and communicated within 15 days of receipt by the insurer.
• In case of delay in settlement of claim after submission of all necessary documents, the insurance company will be liable to pay a stipulated amount of interest.
• A life insurance policyholder is entitled to a “free look period” of 15 days (from the date of receipt of policy) to cancel the policy.
• An insurance company shall respond within 10 days of receipt of any communication from its policy holders.

A third administrative option – before maybe taking the dispute to the civil courts – is filing a complaint with the Insurance Ombudsmen.