In a hurry to get insured it is common for people to focus on the Insurance Plan Benefits and premium only – never the rights and privileges they hold in respect of consumer rights. Review made by a leading insurance analysis company found the prevalence of awareness of rights amongst insurance seekers as dismal. So what are these rights? Here we talk about them in detail.
Firstly, there are are specifics like flexibility period, grace period, free look period of the plan that people need to make themselves familiar with. They need to ask questions like the number of days taken to settle the claim. These vital pieces of information are what will make the process of securing a Life Coverage a crease free experience.
Secondly, there are some absolute rights enjoyed by the consumer:
IRDA guidelines make mandatory the provision by the insurers of all and every information asked by the policyholder. The guidelines clearly state how at the time of buying the plan, the insurance buyer must fill out a form that details how they were made aware of all necessary information relating to the scheme before deciding to make the purchase. Detailed information is crucial to help make the buyer an informed decision as they become aware of the advantages they stand to gain from as also the risks and exclusions that follows.
Refundable cancellation of insurance plan within 15 days of purchase is a guarantee. Free look period would allow the insurers to cut a surrender charge. But unaware of this right, most insurers fail to enjoy this facility and face undue difficulties. A little research goes a long way to help people from being fooled by Insuring Agents.
Paying a lump- sum amount as premium might not be possible for some insurance holders. Thus IRDA provides the right to change the frequency of premium payment. It would require to apply for the commencement form of the respective year in order to be able to change the premium amount.
The policyholder has the right to file a case against the insurance company in lieu of finding anything wrong in the process of policy. The common issues are when insurer charges more for the premium or makes excuses at the time of maturity. If unaware of this right to legally follow through with a complaint, insurance holders stand the risk of losing out on an entire plan. The awareness of such right would ensure prompt action from the company if ever the need arises as every company prefers to not be dragged into a legal mess.
A legally valid claim would deem your company be questioned by the IRDA. Consumer forum is also available upon facing such troubles through the means of contacting IRDA & IGMS. Thus it is extremely important to go through the policy documents in detail, read the fine print, know the rights and privileges, so that in times of trouble one is easily able to spot the discrepancies.
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