Relieving the pain
Apart from these, life insurance companies will have to furnish data to the regulator on a half-yearly basis (September and March) on switching options exercised by the policyholder, premium redirections exercised by the policyholders, partial withdrawals, top-up premium received and insurance cover multiple granted for each product — separately for single premium and non-single premium contracts.
The insurer will have to send a statement of account, every six months, within 15 days for policies in force, including discontinued policies where the proceeds are yet to be paid to the policyholder or his nominee, as the case may be. Typically, for insurance companies most consumer grievances are related to the product features, which are not explained at the time of selling the policy. Misselling of insurance products results in the policy getting lapsed because of non-payment of premiums.
Analysts say examples like converting single premium policies to regular Ulip policies, selling inappropriate products like Ulips for short-term goals and giving erroneous information on
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