Money & Banking

Insurance companies to set up system to address complaints

| | Updated on: Nov 07, 2014

At a meeting of insurance officials organised by the Insurance Ombudsman for Kerala and Lakshadweep here on Thursday, insurance companies agreed to put in place a system to address the grievances of policyholders.

Representatives of 34 insurance companies, including the LIC, attended the meeting. Ombudsman PK Vijayakumar discussed policyholders’ complaints.

Mis-selling of policies by agents, lapse or foreclosure of policies without proper notice to policyholders, high surrender charges levied for foreclosure, denial of claim on account of pre-existing illness, non-payment of interest for delay in settling claims, fabrication of evidence to reject claims, high-handedness of third-party administrators appointed by the companies and over-dependence on surveyor’s report to reject claims were some of the common complaints made by policyholders.

The meeting decided to set up a grievance redressal machinery for all insurance companies.

Published on November 27, 2017

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