Insurance Ombudsmen may
police mis-selling
In order to promote investor
protection, the government
is considering expand the ambit
of the Insurance Ombudsmen
Scheme by bringing under its
jurisdiction the mis-selling of
insurance products. Mis-selling
of insurance policy particularly
Unit Linked Insurance Products
(ULIPs) has been an area of
concern for the regulator.
At present, the jurisdiction of
ombudsmen entails partial or
total repudiation of claims or any
dispute in regard to premium
paid or payable in terms of the
policy. Besides, it has power to
look into cases pertaining to
delay in settlement of claims
and non-issue of any insurance
document to customers after
receipt of premium.
During 2010-11, the 12
ombudsmen across India
received a total of 21,065
complaints. A policyholder can
approach ombudsmen if the
grievance has been rejected by
the insurance company. The
complaint should be filed within
a year from the date of rejection
by the company.
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