Insurance Lokpal will be able to settle cases up to Rs 50 lakh : Claim settlement amount limit increased to provide relief to insurance customers. Earlier, only complaints worth up to Rs 30 lakh were allowed. Insurance companies have to comply with the decision of the Lokpal within 30 days.
Insurance Lokpal will be able to settle cases up to Rs 50 lakh : The amount limit for claim settlement with the Insurance Ombudsman has been increased. Insurance Lokpal offices across the country will now be able to handle complaints related to claims up to Rs 50 lakh. Earlier, these offices were only allowed to take complaints amounting up to Rs 30 lakh. Recently the Finance Ministry has changed the rules for this. Companies associated with the insurance sector and officials associated with the Insurance Ombudsman office had been demanding to increase this limit for a long time.
Complaints will be resolved soon
Experts associated with the insurance sector say that with this change, complaints involving high amounts will be resolved quickly, which will provide great relief to the insurance holders. Presently for this they have to go to the consumer court. It used to take one to two years to resolve the complaints. Complaints in the Lokpal office are resolved within three months.
It is necessary for insurance companies to comply with the decision of the Lokpal within 30 days. If this does not happen, the insured can inform the Lokpal office. In such a situation, insurance companies may have to pay interest.
Consumer court option will remain open
Experts say that if a customer is not satisfied with the decision of the Insurance Ombudsman in a high claim case, then he will have the option of going to the consumer court.
Settlement required within 90 days
Before filing a complaint with the Ombudsman, the insured has to submit a written complaint to the concerned company. After this he has to wait for 30 days. If there is no response from the insurance company then a complaint can be made to the Lokpal office. Lokpal is required to dispose of the complaint within 90 days.
Complaints can be filed online
If the claim is rejected, the insured can file a complaint at the Insurance Lokpal office of their city. Complaint can also be made online. For this you have to go to www.cioins.co.in/Complaint/Online. It is necessary to file a complaint within one year of the rejection of the claim.
The tendency to buy policies with higher cover has increased
Experts say that the tendency among people to buy insurance policies with higher amounts has increased. These include term insurance, health insurance, emergency insurance and accident insurance worth more than Rs 1 crore. According to a study, people earning more in the financial year 2022-23 showed more interest in purchasing a cover policy worth Rs 1.75 crore.
92 percent cases resolved
According to the data, a total of 55,946 complaints were received across all 17 Insurance Lokpal offices located across the country during the financial year 2022-23. Of these, 51,625 i.e. 92.28 percent were disposed of. The Delhi center disposed of all 5,257 complaints received.