IRDA should implement its regulation 'ruthlessly': NCDRC

By Staff
|
Google Oneindia News

Hyderabad, Nov 23 (UNI) Taking a serious view of insurance companies delaying settlement of claims, the National Consumer Disputes Redressal Commission Chairman M B Shah today urged the Insurance Regulatory and Development Authority to 'ruthlessly' implement its regulations for the benefit of policy holders.

''The IRDA should act ruthlessly against insurance companies to protect the interests of policy holders and reduce the number litigation in consumer and other courts,'' Mr Justice Shah said delivering the keynote address at a seminar on ''Grievance Redressal-Insurance Sector'' organised by the IRDA and Institute of Insurance and Risk Management.

He wanted the IRDA to re-publish the book on principles of Insurance for the benefit of policy holders.

Expressing concern over long delay in settlement of claims and repudiation of claims taking advantage of technicalities, he made it clear that all claims should be settled within six months. He suggested decentralisation of powers by insurance companies to its higher and middle level officers so that claims could be settled without much delay.

Justice Shah was critical of insurance companies appointing surveyor after surveyor in a bid to repudiate high value claims in case of fire mishaps.

He underscored the need for training of insurance agents so that they enlighten the policy holders about the terms of policy, including exclusion clauses which were mostly printed in 'microscopic letters.' Insurance companies should provide a 'clean and transparent' policy and a copy of the proposal within one month after a policy was taken.

Pointing out that in most cases, policy holders were kept in the dark on the terms of the policy by the agents, who take their signatures on dotted lines, he suggested use of all languagues recognised by the Constitution to communicate with policy holders.

IRDA chairman C S Rao stressed the need for capacity building of insurance companies in view of the rapid expansion of insurance coverage now.

The seminar would deliberate from the consumers point of view on the crucial issues, including insurer's rationale on non-performance, intermediary's role and reforms in insurance regulations.

UNI SM ROY MQA GC1547

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X