Consumers are essential for the nation's economy. Without consumers, there would be no buying and selling of goods and services. Therefore, consumers must be given certain rights. Plus, with the increased popularity of e-commerce industries, the need to protect consumer rights is higher than ever. As a consumer and policyholder, you hold certain rights when it comes to insurance. This National Consumer Rights Day, let's find out what those rights entail.What is National Consumer Rights Day?
Celebrated on 24th December every year, National Consumer Right Day promotes the rights of consumers across the country. People participate in campaigns to raise awareness about consumer rights. As a consumer, you can talk about fraudulent incidents on social media platforms to call out the violators.Understanding consumers' insurance rights
Today, insurance should be an integral part of your financial planning. Insurance provides financial protection against unwarranted circumstances. As a policyholder, you should be aware of the following rights:
- Right to information
Before buying any policy, you have the right to ask the insurer everything you wish to know about the policy. Per the Insurance Regulatory and Development Authority of India (IRDAI), the insurance provider must communicate all policy-related information to you. Information includes inclusions, exclusions, waiting periods, deductibles, add-on riders etc.
- Right to terminate the insurance policy
- Premium payment rights
Typically, you pay a lump sum annual premium towards most insurance policies. However, IRDAI has allowed insurance providers to accept premiums via monthly, quarterly or half-yearly instalments. This offers relief to policyholders. You can conveniently change the frequency of the premium payments during policy renewals.
- Right to seek redressal
You can file a complaint against an insurance company. You can approach the insurer's grievance redressal cell. If you are dissatisfied with the response, you can voice your issues with the grievance redressal cell under the IRDAI's Consumer Affairs Department. You can also file complaints about delayed maturity payments and claim denials.
- Insurance claiming rights
Per IRDAI, an insurer must settle your insurance claims within 30 to 45 days of receiving the last necessary document. If there's a delay, the insurer pays 2% interest from the day the insurer receives the last document until finally paying the claim amount. Also, an insurer cannot reject your claim if you have held a policy with the insurer for eight consecutive years without a break.Buy general insurance
All non-life insurance policies come under the ambit of general insurance. You can pay for expensive medical treatments with health insurance and pay for repairing accidental damage to your vehicle with motor insurance. Home insurance keeps your home and its content protected from the aftermath of natural and human-made disasters. Lastly, you can finance unforeseen expenses during your international trips with travel insurance.
This National Consumer Right Day, take a moment to understand your insurance rights before buying your general insurance policies.Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.