Lok Sabha Question No. 33 (STARRED), answered on 2021-07-20
Subject: Online Policies
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: N.K. Premachandran

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK  SABHA

STARRED QUESTION NO. *33

TO BE ANSWERED ON 20.07.2021

## ONLINE POLICIES

*33. SHRI N.K. PREMACHANDRAN:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government is aware that the insurance companies are denying their liability of indemnifying the consumer on the basis of the online policies;

- (b) if so, the action taken by the Government in this regard;

- (c) whether no local or regional offices are available for insurance companies and they are not responding to the notices issued by the consumer redressal forum and if so, the action taken thereof;

- (d) whether  the  Government  proposes  legislation  for  making  the  insurance  companies  issuing online policies liable and if so, the details thereof alongwith the action taken for ensuring the right of policyholders to get the claims; and

- (e) whether  the  Government  is  aware  that  the  private  insurance  companies  escape  from  the action of consumer forum on flimsy grounds and if so, the action taken thereon?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h ¼Jh ih;w'k xks;y½

THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI PIYUSH GOYAL)

(a) to (e)  :   A Statement is laid on the Table of the House.

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## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO.*33 FOR 20.07.2021 REGARDING ONLINE POLICIES.

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- (a) & (b)  : Insurance Regulatory and Development Authority of India (IRDAI) has informed that they have not received any complaint against any insurer alleging rejection of a claim in respect of insurance policy bought online.
- (c) :  IRDAI has informed that the Head Offices including regional offices of the Public Sector Insurance  Companies   respond  to  the  notices  issued  by  the  consumer redressal  forums.  There  are also  local  and  regional  offices  of  private  insurance  companies,  but  for  the  notices  issued  by  the Consumer Commissions, the Head Offices of these insurance companies respond.

Further,  IRDAI  has  also  informed  that  they  have  not  received  any  complaint  alleging  that  the insurers had not responded to the notices of consumer forums. However, in case any insurer does not respond to a legal notice they are liable to legal consequences.

- (d)  &  (e)  :  IRDAI  has  informed  that  no  insurer  can  sell  any  insurance  policy  including  online policies  without  the  approval  of  IRDAI  and  as  such  no  separate  legal  framework  is  required  to ensure  viability  of  online  insurance  products.   The  terms  and  conditions  of  all  policies  are  also approved  by  IRDAI,  so  as  to ensure that rights of policyholders are  protected. Consumer Commissions are quasi- judicial bodies that decide and resolve consumer complaints including those related to insurance claims.

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