Lok Sabha Question No. 3419 (UNSTARRED), answered on 2017-08-04
Subject: Unfair Business Practices of Insurance Companies
Ministry: FINANCE
Asked by: SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, SATYA PAL SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 3419

TO BE ANSWERED ON 4 th  August, 2017/Shravana 13, 1939 (Saka)

## Unfair Business Practices of Insurance Companies

3419. SHRI SANJAY DHOTRE:                             DR. SATYAPAL SINGH: SHRI RAHUL SHEWALE:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken cognizance of increasing complaints against the public and private sector general insurance companies under the category of unfair business practice at the point of sale during each of the last three years and the current year;
- (b)  if  so,  the  details  thereof,  company-wise  and  the  reasons  therefor  along  with  the  action taken/being taken by the Government/IRDAI on such complaints;
- (c) whether the Government/IRDAI has fixed any time-frame to resolve such complaints;
- (d) if so, the details thereof along with the number of complaints that have not been resolved in the  fixed  time  frame  during  the  last  three  years  and  the  current  year  and  if  not,  the  reasons therefor;
- (e)  whether  the  Government/IRDAI  has  laid  down  guidelines  to  curb  such  unfair  business practice at the point of sale;
- (f)  if  so,  the  details  thereof  along  with  the  name  of  such  companies  penalised  for  noncompliance of such guidelines during the said period, company-wise; and
- (g) the other corrective steps taken/ being taken by the Government in this direction?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a) to (g): Insurance Regulatory and Development Authority of India (IRDAI) has launched the Integrated  Grievance  Management  System  (IGMS) that  offers  an  online  mechanism  to policyholders to register complaints against insurance companies and track them. A statement showing all types of complaints received against both public and private general insurers during the last 3 years and the current year is given in Annexure.

IRDAI tracks the action of various insurers on such complaints and monitors resolution as per laid down time frame. The Authority has prescribed a time limit of 15 days for insurers to provide their final resolution to complaints.

IRDAI  has  notified  IRDAI  (Protection  of  Policyholders'  Interests)  Regulations,  2017.  Vide Regulation  5(1)(iv)  of  the  said  Regulations,  the  Authority  has  mandated  insurers  to  have  in place  a  board  approved  policy  detailing  steps  to  be  taken  to  prevent  mis-selling  and  unfair business practices at point of sale and service.

Further, IRDA (Advertisement and Disclosure) Regulations, 2000 and other guidelines relating to  advertisements  are  aimed  at  ensuring  that  any  communication  (including  those  on  the internet) which directly or indirectly result in eventual sale or solicitation of policy should not be unfair or misleading.

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