In insurance, policyholders—people who buy the insurance—have the weakest voice. Insurers, intermediaries, third-party administrators and surveyors have strong institutional processes to express their perspectives. Policyholders don’t. This is why regulation relating to policyholder rights is so important.
This regulation, first introduced in 2002 just after insurance was liberalized, was a seven-page document that outlined the need for minimum standards in proposal forms, insurance policies, claims, servicing and grievance handling mechanisms. With minor modifications, this regulation remains in force today.