(a) whether the Government is aware that some private sector insurance companies harrass the policy holders in settlement of their claims;
(b) if so, whether the Government has received any complaints in this regard;
(c) if so, the details thereof indicating the action taken by the Government on such complaints;
(d) whether the Government has issued any directions to the private sector insurance companies for the redressal of grievances of policy holders; and
(e) if so, the details thereof?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PLANIMANICKAM) :
(a) and (b) Government as well as the Insurance Regulatory and Development Authority (IRDA) have been
receiving complaints against the insurers, including private insurers, relating to non-settlement or
delay in settlement of claims,repudiation of claims/partial settlement of claims etc.
(c) to (e) IRDA which was established to protect the interest of the policy holders, has notified the
Insurance Regulatory and Development Authority (Protection of Policyholders` Interests) Regulations, 2001.
These regulations stipulate the duties and obligations of the insurers and policy holders in respect of
an insurance contract, both at the point of sale and in the event of a claim, and setting up of in-house
grievance redressal mechanism in the insurance companies. In addition to this, for grievances relating to
the settlement of claims, the policy holders could approach the existing institutions like Insurance
Ombudsman, IRDA Grievance Cell, Consumers Fora or the Courts.