Review of award by Insurance Ombudsman
3 months ago
Complainant purchased the policy -ULIP plan on 24.11.2017. She paid premiums for 5 years i.e. till the lock in period. Thereafter, she applied for surrender due to her personal reasons and wanted to invest in annuity plan of with another insurer. Reg. Insurer denied the same as per terms and conditions, and advised to purchase pension plan utilising surrender proceeds, with or without commutation, from them only. Ombudsman has'nt considered reasons for redemption, compensation for delay in order. Need legal insurance opinion.
A.Dear Client,
An insurance policyholder can surrender, migrate and port his insurance policy or invest with another Insurer that suits his or her situation following the policy condition and regulations of the regulatory authority, IRDA. An Insurer cannot force an insured to migrate into their existing policies on surrender of an insurance policy. Such an action of an Insurance Company is termed an unfair trade practice and a violation of IRDA(Protection of Policyholder Interest) Regulations, 2002. So, in the given situation, you need to file a complaint under Sec.35 of the Consumer Protection Act, 2019 over unfair trade practices as defined under Sec.2(47) of the Act before the Dist. Consumer Commission claiming compensation for harassment and mental agony with the cost of litigation. The Complaint should be filed within two years from the date of cause of action
An insurance policyholder can surrender, migrate and port his insurance policy or invest with another Insurer that suits his or her situation following the policy condition and regulations of the regulatory authority, IRDA. An Insurer cannot force an insured to migrate into their existing policies on surrender of an insurance policy. Such an action of an Insurance Company is termed an unfair trade practice and a violation of IRDA(Protection of Policyholder Interest) Regulations, 2002. So, in the given situation, you need to file a complaint under Sec.35 of the Consumer Protection Act, 2019 over unfair trade practices as defined under Sec.2(47) of the Act before the Dist. Consumer Commission claiming compensation for harassment and mental agony with the cost of litigation. The Complaint should be filed within two years from the date of cause of action
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A.Dear Sir,
You may approach Consumer Forum or High Court for getting justice in many cases same formula being used.
You may approach Consumer Forum or High Court for getting justice in many cases same formula being used.
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