Insurance reforms: Why claims matter more than distribution costs
“Life insurance complaints may have declined partly because mis-selling, such as traditional policies being sold as fixed deposits, often comes to light only after two or three years,” said Shilpa Arora, co-founder and chief operating officer, Insurance Samadhan. “While complaints can be filed with the Insurance Ombudsman within a year of the insurer rejecting them, such cases are increasingly being rejected because the policy was bought much earlier. Policyholders often discover mis-selling only when the second or third premium falls due. They have nowhere to go.”
