 "Policyholders' get more chance for disputing claim amounts")
Imagine your car was involved in an accident and you claim for total loss under your motor insurance. You claim Rs 1 lakh but your general insurance company says you are eligible only to get Rs 75,000 due to some deductibles.
Instead of wasting time over arguing over the amount, you decide to accept Rs 50,000 and sign the 'discharge voucher' or 'settlement intimation voucher' hoping to later lodge a complaint or go to court if required.
But when the matter reaches court, the company says that because you have signed the voucher, the claim has been settled in full and you have agreed to it, thereby giving up your right to contest the claim.
But now this may change. In a recent guideline, the Insurance Regulatory Authority of India (Irdai) said, "...execution of such vouchers does not foreclose the rights of policy holder to seek higher compensation before any judicial fora or any other fora established by law''.
This is good for policyholders, says Arvind Laddha CEO, Vantage Insurance brokers.
ALSO READ: General insurers' motor problem
"At the time of settling claims, the policyholder has to sign the voucher. In many cases insurance companies refuse to pay any claim if the policyholder did not sign the voucher. So, often the policyholder would sign thinking that he can get at least some money. While earlier policyholders used to find it difficult to go to court once they signed the voucher, now following Irdai's clarification, they can still purse the case if they are not happy with the claim amount,'' he explains.
The customer has to sign the voucher in order to get the claim amount, as part of the claim process. But if someone feels something is wrong, he can raise a complaint even if he signs the voucher, says Sanjay Datta, chief of underwriting and claims, ICICI Lombard General Insurance.
"In most cases, once customers sign the discharge voucher, they don't come back for additional claims. But that has to be done within three years of settling the claim. After three years, the policyholder cannot ask for additional claims,'' he says.
While technically, vouchers have to be issued in all kinds of policies, usually complaints arise more in fire and motor policies, especially in third party claims, because there is scope for negotiation in such cases, says V Jagannathan, Chairman-Managing Director, Star Health and Allied Insurance. "It is a good move to protect policyholders. But how it will affect customer complaints in future needs to be seen,'' he says.
Instead of wasting time over arguing over the amount, you decide to accept Rs 50,000 and sign the 'discharge voucher' or 'settlement intimation voucher' hoping to later lodge a complaint or go to court if required.
But when the matter reaches court, the company says that because you have signed the voucher, the claim has been settled in full and you have agreed to it, thereby giving up your right to contest the claim.
But now this may change. In a recent guideline, the Insurance Regulatory Authority of India (Irdai) said, "...execution of such vouchers does not foreclose the rights of policy holder to seek higher compensation before any judicial fora or any other fora established by law''.
This is good for policyholders, says Arvind Laddha CEO, Vantage Insurance brokers.
ALSO READ: General insurers' motor problem
"At the time of settling claims, the policyholder has to sign the voucher. In many cases insurance companies refuse to pay any claim if the policyholder did not sign the voucher. So, often the policyholder would sign thinking that he can get at least some money. While earlier policyholders used to find it difficult to go to court once they signed the voucher, now following Irdai's clarification, they can still purse the case if they are not happy with the claim amount,'' he explains.
The customer has to sign the voucher in order to get the claim amount, as part of the claim process. But if someone feels something is wrong, he can raise a complaint even if he signs the voucher, says Sanjay Datta, chief of underwriting and claims, ICICI Lombard General Insurance.
"In most cases, once customers sign the discharge voucher, they don't come back for additional claims. But that has to be done within three years of settling the claim. After three years, the policyholder cannot ask for additional claims,'' he says.
While technically, vouchers have to be issued in all kinds of policies, usually complaints arise more in fire and motor policies, especially in third party claims, because there is scope for negotiation in such cases, says V Jagannathan, Chairman-Managing Director, Star Health and Allied Insurance. "It is a good move to protect policyholders. But how it will affect customer complaints in future needs to be seen,'' he says.
