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Wednesday, February 27, 2013

Mis-Selling of Insurance Products and Unfair Business Practices of Insurance Companies; Implementing the Integrated Grievance Management System (IGMS)

The Insurance Regulatory and Development Authority (IRDA) has informed that following initiatives have been put in place to educate the consumers against mis-selling of insurance products and unfair business practices of Insurance Companies:-

Publicity in English, Hindi and various Indian languages via mass media such as Television, Radio, Print and Internet and other channels such as Metro, alerting prospects and the Public against mis-selling.
IRDA has an exclusive Consumer Education Website (www.policyholder.gov.in) which gives advices to the public and prospects regarding guarding themselves against mis-selling.
IRDA has published Policyholder Handbooks and these handbooks are also uploaded on the web and every insurance company in India has on its website a link to IRDA’s Consumer Education Website.
The IRDA has also published a series of comic books titled ‘Ranjan and his tryst with insurance’ on the theme of guarding against mis-selling which are distributed through various channels.  The Comic book series have also been converted into animation films.
IRDA also supports seminars by various consumer bodies to apread the message on guarding against mis-selling.

            IRDA has informed that various insurance companies are integrated with Integrated Grievance Management System (IGMS) on a real time basis and all complaints registered in the systems of various insurance companies are mirrored in the central repository of IGMS. IRDA analyses the complaints and publishes the same periodically. The data published by IRDA is also available on its Consumer Education Website (www.policyholder.gov.in). The IGMS has helped improve efficiency of insurance companies in handling complaints and identify systemic issues for corrective action. IGMS thus offers a tool to IRDA to monitor certain aspects of market conduct.

            This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Rajya Sabha today.
Source : PIB Release, 26 Feb, 2013

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