Rights of an Insurance Policyholder

As an insurance policyholder, you have certain rights that you must be aware of. From receiving the complete policy documents to gaining information about your chosen policy plan and claims, you should have access to it all as a smart consumer. 

We have a checklist of some important rights of a policyholder mentioned below and ensure that you use them all:

 

1. Access to relevant documents

 

As a policyholder, you have the right to receive your policy documents within 60 days from the date of submission of proposal to the insurance company. After the company receives your proposal, it must confirm the proposal within 15 days. According to the Insurance Regulatory and Development Authority of India (IRDAI), the insurance company or the representative must provide complete information about the policy and the chosen plan to the buyer. As a consumer, you can demand information related to any of your policies at any stage.

 

2. Cancellation

 

As an insurance policy buyer, you can cancel the policy within a period of 15 days from the date of receipt of policy documents if you disagree with the terms and conditions of the policy. A free-look period of 15 days is one of the most important rights of a policyholder. You can mention the reasons for cancellation and you would be entitled to a refund of the premium paid. Expenses incurred by the insurer for medical examinations, 15 days cover and stamp duty charges would be deducted. Also, if the policy is linked to a unit linked insurance policy (ULIP), the insurance company can repurchase the units at the price on the date of cancellation. ULIP holders have the right to withdraw their investment in the units partially, that is, they can switch funds in a ULIP from one plan to another without any additional charges. As a policyholder, you can also surrender the policy after the lock-in period gets over.

 

3. Policy Period

 

The policy term can be increased or decreased by the policyholder. The amount insured can also be increased but such changes may affect the amount of premium payable. You can also ask for changes in the policy such as mode of payment of premium, that is, switch from payment via cheques to direct debit or through ECS instructions to the insurance company's bank.

 

4. Claim Procedure

 

If the policyholder files a claim, he/she will have to provide all the necessary documents to the insurance policy service provider. In case the insurance company needs any additional documents, it has to make a written request within 15 days of receipt of the claim. The company is bound to process the claim as early as possible, without any intentional delays. Any enquiry or investigation in the claim filed should be completed within 180 days by the insurance company. However, if no investigation is required, then the insurance service provider should settle the claim within 30 days. If there's any delay then the company requires to pay a penalty to the policyholder.

 

5. Customer Support

 

The policyholder has the right to contact its insurance policy service provider for any information on the policy or change details such as address, nominees, etc. Every insurance company must have a dedicated customer service support centre to provide all the required information to consumers. It has to provide various channels such as email addresses, phone numbers, website and a branch address which the policyholder can use to reach the insurer.

 

So whenever you plan to buy an insurance policy, remember to access all your rights. Also, while buying the policy, you must check with your insurance company if it is providing you with all the rights or not. If you find that the company is not providing you all your rights, then you must approach the IRDAI to get the most out of your insurance policy.