Insurance policies

Sell ​​life insurance policies? You may be under the NCDRC’s radar. here’s why

The Insurance Regulatory and Development Authority of India (IRDAI) has been commissioned to look into the role of insurance agents selling life insurance policies. The National Consumer Dispute Redress Commission (NCDRC) has asked the insurance regulator to issue new guidelines on insurance agent conduct and responsibilities.

IRDAI has been urged to issue new guidelines and also amend insurance policy application forms so that customers are aware that non-disclosure of medical conditions could result in repudiation. A bench consisting of Dr SM Kantikar and member Binoy Kumar expects the move to avoid mental agony and unnecessary expense for the insured.

The decision follows an appeal filed by HDFC Standard Life Insurance Company to the NCDRC. The life insurer had challenged an order from the National Consumer Dispute Settlement Commission in Jaipur which ruled in favor of the consumer.

The Supreme Consumer Commission notes that the deletion of facts from the proposal form in the above case had tainted the complainant’s case.

The NCDRC said: “The appeal is granted and the order of the State Commission is rescinded. We also advise the Insurance Regulatory and Development Authority of India (IRDAI) to issue new guidelines on the conduct and the responsibilities of the insurance agent when dealing with a life insurance policy on the need for full disclosure of all illnesses suffered by the client in the application form and the implications of not The proposal form may also be amended appropriately for this purpose,” PTI said.

In this case, it was observed that the deceased had obtained the life insurance policy from the company by concealing the material information regarding his medical conditions which he suffered from since 2008.

Counsel for the respondent/plaintiff argued that the insurance company had failed to prove that the cited disease played a causal role in the death of the insured and therefore there was no to reject the claim. The plaintiff blamed the agent of the insurance company, alleging that he had been misled in completing the application form and that he had signed the dotted lines in good faith.

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