National Consumer Rights Day, 24 December 2022

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Everyone looks to gain knowledge about different types of insurance plans. However, people are not very aware of the rights of insurance policyholders. We will discuss them in this post.

It is important to be aware of the various insurance policies Investment plans Equally important is being aware of policyholders’ rights available in the market. Being well aware of the rights ensures that policyholders make the right decisions and choices based on their investment.

National Consumer Rights Day is observed on December 24 every year to create awareness among consumers about their rights and responsibilities. On this occasion, we will discuss the rights of consumers of insurance policy holders in preparing the best investment plans.

What is National Consumer Rights Day?

The Consumer Protection Act in India was enacted on 24 December 1986 and was updated on 6 August 2019 to ensure that the rights of consumers in the country are not compromised. This Act was passed to ensure protection of consumers against exploitation. Cases of defective goods, fraudulent service, unfair trade etc. will be dealt with under the law.

National Consumer Rights Day, India celebrates consumer rights and promotes them across the country every year. As e-commerce becomes more popular, it is important to be well aware of your rights and responsibilities as a consumer. The theme of National Consumer Rights Day 2022 is ‘Alternative Consumer Grievance/Dispute Redressal’.

Let us discuss some interesting consumer rights facts below.

Interesting Consumer Rights to Know

Rights of consumers as insurance policyholders

Below are some rights that consumers of insurance policies should familiarize themselves with:

Option to cancel policy during free-look period

Consumers should know they have a choice Cancellation of insurance policy If they are not satisfied with the terms and conditions of the policy after checking the documents.

Also, if the insured feels that the policy does not adequately meet their requirements, they can cancel the policy within 15 days of the pre-look period.

To proceed with policy cancellation, the policyholder must contact the insurer and write a cancellation request letter. There is a form prescribed by the insurers in which the policy details must be filled and the reason for canceling the policy must be mentioned. Once the insurer receives your written application to cancel the policy, they will take action and refund your money after deducting certain charges like stamp duty, medical examination etc.

Option to change mode and frequency of premium payment

If you have selected ‘Cheque’ as your preferred mode of payment while purchasing the policy. Then you want to change it to something else like direct debit or ECS, you can do that by informing the insurer about it. With automatic deductions directly from your account, you don’t have to worry about remembering the premium payment date. Hence, it is a hassle-free transaction mode that eliminates the risk of policy expiry. The policyholder can also change the premium payment frequency as per their choice to monthly, semi-annual or annual payments.

Nominee can be changed as per requirement

The nominee is the beneficiary of the policy who receives the pay-out after the death of the insured. While buying the policy, the insured has to fill the nominee details in the proposal form, which the policyholder can change as many times as he wants. Therefore, if the policyholder feels that someone else should receive the death benefit, that person can change the nominee’s details accordingly. The insured may appoint more than one nominee and divide the sum assured among them.

Option to get policy copy in case of lost documents

If the original insurance copy of the policyholder is lost, he/she can get a duplicate copy from the insurer. A duplicate copy is equivalent to the original with the same rights, except during the pre-look period. All you need is to go to the insurer and submit the application by writing about the loss of documents. You must mention the details including date of policy issue, policy number, type of cover and how it was lost.

Details of the loss of policy documents may be required to be published in a local newspaper at your expense. Also, sign an indemnity bond with the insurance company before getting a duplicate copy of the policy.

read more: Key Features and Benefits of e-Insurance Account

To conclude

The main purpose of insurance and other investments is to financially support the insured’s dependents in the event of an untoward event. These consumer rights are in favor of benefiting consumers and doing the best in policy. National Consumer Rights Day is celebrated in India to create awareness about this.

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