Insurance companies must send documents on time
India's insurance rule maker told all companies to give papers to officials quickly. If they do not, they will face decisions made without hearing their side.
What the rule maker said
The Insurance Regulatory and Development Authority of India, which is the main rule maker for insurance companies, has given a strict warning. They told all insurance firms that they must hand over all papers related to customer complaints right away. Insurance companies cannot delay sending these files anymore.
Why fast action is needed
When customers have a problem with their insurance, they complain to an official called an Ombudsman. This official needs all the facts quickly to solve the case within ninety days. If insurance companies hold back papers, it takes too much time to help the customer.
- Insurers must submit all complaint papers at the exact same time.
- Fast paper submission helps officials decide cases in ninety days.
- Companies that ignore this rule will face decisions made without them.
- Customers will get faster answers to their complaints.
What happens if they delay
If an insurance company fails to give their documents on time, the official will make a final choice without listening to the company's side of the story. This is called an ex-parte order. This new rule will make sure insurance companies take customer complaints very seriously.