JOIN USIn order to promote investor protection, the government is considering to expand the ambit of the insurance ombudsmen scheme by bringing under its jurisdiction the mis-selling of insurance products.
There has been a proposal to enhance the jurisdiction of office of insurance ombudsman by bringing mis-selling of policies. The government is considering it, sources said.
Mis-selling of insurance policy particularly Unit Linked Insurance Products (ULIPs) has been an area of concern for the regulator.
At present, jurisdiction of ombudsman entails any partial or total repudiation of claims or any dispute in regard to premium paid or payable in terms of the policy.
Besides, it has power to look into cases pertaining to delay in settlement of claims and non-issue of any insurance document to customers after receipt of premium.
A policyholder can approach insurance ombudsmen if the grievance has been rejected by the insurance company. In addition, the complaint should be filed within one year from the date of rejection by the company.