Insurance Agent: Soon insurance agents will not be able to cheat you. They will have to keep audio-visual records while giving you information about any plan. During this time they will have to give complete information about the policy. Because of this, incidents of mis selling will be stopped.
There was a huge increase in the cases of miss selling
In the recent past, there has been a tremendous increase in the cases of mis-selling i.e. selling insurance policies to people by giving wrong information. Later thousands of cases come to the consumer forum. A new rule may come soon to reduce these. The Ministry of Consumer Affairs has recently written a letter to the Finance Ministry in this regard. The ministry has demanded changes in the rules through a letter. The Consumer Affairs Ministry has demanded that insurance agents read out the terms and conditions or the summary of the policy.
Most of the disputes are due to wrong understanding of terms and conditions.
Consumer Ministry Secretary Rohit Kumar Singh has written this letter to Financial Services Secretary Vivek Singh. In this he has mentioned that most of the disputes between consumers and insurance agents occur only due to wrong information about the terms and conditions. Insurance agents tell consumers only the positive aspects of the policy. This is the reason why many controversies arise in future.
IRDA has to take final decision on new conditions
The final decision on this issue has to be taken by the Insurance Regulatory and Development Authority of India (IRDAI). IRDAI itself decides the rules in the insurance sector. Apart from this, the issue of unclear language in the terms and conditions of the insurance policy has also been raised in the letter. He has said that due to such difficult language, consumers face a lot of problems. Rohit Kumar Singh has written that according to the rural people, the terms and conditions of the insurance policy should be explained in local languages also.
Many such cases are pending in the consumer court.
In many cases, when policy holders apply for claims, insurance companies tell them new rules. This gives rise to disputes and cases go to the consumer court. Apart from this, Justice Amreshwar Pratap, President of the National Consumer Dispute Redressal Commission, has recommended abolishing the rule of 24-hour admission on medical insurance.
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