The commission has also suggested replacing the present system of insurer-appointed ombudsman with grievance redressal authorities (GRAs).
According to the proposal, any claim made on a life policy that has been in effect for a period of at least three years will have to be accepted by the insurance companies.
The National Law Commission is undertaking a mammoth exercise of merging the provisions of the Insurance Regulatory and Development (IRD) Act with the Insurance Act, 1938, to avoid multiplicity of legislations.
The insurance industry is peeved by what some perceive as sweeping changes that could well result in companies being forced to accept fraudulent claims.
