Insurers must curb product mis-selling: Insurance Ombudsman Delhi

Insurance companies have to keep a check on incidents of mis-selling, Insurance Ombudsman Delhi region Sunita Sharma said on Monday.

Stressing that customers are the king and insurers are in existence because of customers, she said companies should avoid mis-selling products.

Sharma, a former LIC MD, said usually companies engage customers till the free look period and disappear after that as they cannot make a claim of mis-selling after that.

Policyholders are allowed a period of at least 15 days (30 days in case of electronic policies and policies sourced through distance mode) from the date of receipt of the policy to review its terms and conditions and to return the same if not acceptable.

Insurance Ombudsman is a quasi-judicial grievance redressal machinery to redress complaints of insured persons against life and non- life insurance companies.

Observing that the Self Contained Note (SCN) does not come on time from insurers, she said it is advised that these should be sent to customers within the stipulated time of 10 days.

Besides, Sharma said, there is a need to review the role of Third Party Administrators (TPAs) as in many cases insurers are influenced by them.

During 2022-23, the total number of complaints across all 17 Insurance Ombudsman Offices was 55,946, of which the offices of Insurance Ombudsman had disposed of 51,625, or 92.28 per cent.

The Delhi centre disposed of all 5,257 complaints it received in 2022-23, she said, while speaking to various stakeholders to celebrate the Bima Lokpal Day.

November 11 is celebrated as the foundation day of establishment of the Institution of 'Insurance Ombudsman'.