IRDA tightens Insurers on Mis-selling
The insurance companies should provide proper understanding of the product at the time of selling a policy to avoid mis-selling, according to Mr J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority (IRDA).
“Mis-selling has been a major area of complaint from a consumer point of view. In many cases, there seems to be no clarity on how to interpret a policy and its implications,” Mr Narayan said in his keynote address at a workshop on consumer grievance management in the insurance industry, organised by IRDA, here on Friday.
On an average, two-three lakh complaints are registered in the country per annum while the industry is selling about five crore policies a year, he said.
Out of this, over one lakh complaints are on mis-selling and the remaining pertain to claim settlement and other issues, he added.
The industry, especially, private insurers, should set up benchmark time-frames for addressing various sets of complaints from the consumers, the regulator said.
The institution of ombudsman, which was introduced prior to the formation of IRDA, would also be brought under the purview of IRDA “sooner or later”, Mr Narayan said adding that further streamlining of the ombudsman system could be taken up later.
IRDA will be introducing an integrated online grievance redressal system to help the policyholders, he said.
The proposed software would integrate existing system of insurance ombudsman, the insurers, consumers and the IRDA.
Mr K. Rangabhashyam, Insurance Ombudsman, Kolkata, said complaints of mis-selling accounted for more than half of the total complaints.
“On an average, the 12 offices of ombudsman across the country receive 12,000 complaints per annum out of which 50 per cent are non-entertainable. In the remaining, mis-selling of policies is a major issue,” he added.
Sudhakar M. Kamble Said,
March 29, 2009 @ 12:35 pm
Now a days Tata AIG, ICICI Prudential, BajajAllianze & such other life insurars are displyaing advertisement regarding Health Insurance seem irritable. Persons having heart trouble may have grat problem seeing the add. save your heart from attack, save yourself from stroke and such other. I think IRDA have not shown any interest in public health after seeing or reading such adds.I wish to draw your kind attention towards such adds & Insurance companies. Kindly stop such types of ads otherwise there will not be any option to go for PIL against such adds.
Regards
S.M Kamble
9423012757 / 02162 228813