Life Insurance March 7, 2020

List of Common Insurance Complaints in India

Usually insurance is a technical concept. People usually don’t understand it completely and then they have a lot of complaints related to it against both the insurance policy purchased by them as well as against the insurance company. Let’s understand what the most common insurance complaints in India are –

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Complaints of claims being unfairly rejected by Insurance Company

Claims under insurance policies are generally not rejected by the insurance company if everything is in order and the claim is genuine. But in some of the extreme cases, the claim may be rejected if the process of claim has not been followed or if any of the relevant documents for the claim have not been submitted or in case the company finds the claim to be fraudulent. Hence you should find out the reason for rejection of your claim before complaining of claim rejection.

The agent has cheated or has sold a wrong policy

It is a common complaint by most of the customers who buy the insurance policy through an agent. In case of the wrong policy being sold to you, the insurance company is not liable. It is the duty of the customers to thoroughly check what are the benefits and offers provided by the Insurance plan they plan to buy. It is advised to read through the policy documents and understand the features and the benefits of the plan and also check whether the policy they are opting to buy is suitable for their requirements or not. The insurance company provides the disclaimer to read through the terms and conditions of the policy thoroughly so that the customers know what they are buying.

Complaints relating to not receiving the double of the amount invested as promised by the Agent

Usually, Unit-linked policies offer market linked returns to policyholders which are subject to market performance. The returns on such insurance plans are not guaranteed. The agents cannot provide you with guaranteed returns or promise doubled returns on the amount invested by you in the policy. So you should be aware of the fact that these investments and the returns on these investments are subject to market risk and one must not expect double returns from the insurance plans.

Complaints of policy not being issued by the Insurance Company

When the customer submits the application or proposal form, it is underwritten by the company. The insurance company assess whether the company can take the risk under the policy or not. If the risk covered in the insurance policy is high because of which the probability of a claim increases then the insurance company will not issue the insurance policy to the customer. However, other companies might issue the policy to the customer subject to certain restrictive terms and conditions. Different insurance companies have different underwriting rules. The customer can approach any other insurance company to buy an insurance plan if one company rejects the proposal of insurance.

Common Insurance Complaints – Conclusion

You should educate yourself with the important terms and conditions, the concepts, the benefits, the inclusions and exclusions of the insurance plans before you opt to buy one. Only after you know the insurance policy, you will not have complaints. So you should always understand the terms and conditions of the insurance plan that you wish to buy and keep yourself educated and informed of its various inclusions and exclusions. You should also read through the policy documents to know what you can expect from the coverage of the insurance plan you have brought. If you make an informed decision and complete knowledge of the plan purchased by you then you will not have any complaint against the insurance company.

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