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Insurance
Call for changes in insurance forms
Our Bureau
Hyderabad
,
Jan. 17
FINDING the terms and conditions in insurance policies with numerous exclusions in fine print highly user unfriendly and one-sided, the National Consumer Disputes Redressal Commission has advised insurance companies to do away with the current format of contract forms and introduce easy-to-understand terms and conditions, preferably in local languages.
At a national seminar on `Consumer Protection Act 1986 and Insurance Law' here on Monday, the Commission President, Mr Justice M.B. Shah, said in most cases it was found that insurance policies contain numerous terms and exclusion clauses normally not known to the insured public.
Mr Justice Shah also found fault with the insurance companies for relying on such ambiguous terms and exclusion clauses in repudiating the claims of the insured public and rejecting the reports of surveyors and investigators, appointed under the provisions of the Insurance Act.
Further, criticising the one-sided right to terminate the insurance contract currently provided to the insurance companies, Mr Justice Shah said it was the duty of the insurers to diligently apply the mind to the terms of the policy and relevant materials and accept the claim of the insured, unless the insurer has clear evidence of breach of a condition on the part of the insured.
Echoing similar views, the Andhra Pradesh State Consumer Disputes Redressal Commission President, Mr Justice I. Venkatanarayana, said there is a general feeling that the insurance companies repudiate claims at the drop of a hat.
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