Consumer court asks IRDAI to revisit role of insurance agents

The National Consumer Disputes Redressal Commission (NCDRC), a quasi-judiciary body to protect the interests of consumers, has directed IRDAI to revisit their guidelines on the role of insurance agents.

In fact, the consumer court has asked the insurance regulator to issue new guidelines on the conduct and responsibility of insurance agents.

This court has directed IRDAI while hearing an appeal filed by HDFC Standard Life Insurance challenging an order of the state consumer disputes redressal commission, which ruled in favour of the consumer.

According to the life insurer, the policyholder concealed his pre-existing conditions to the company when he bought the insurance policy. However, the insurer failed to prove its claim before the court.

In its reply to the court, the life insurer said that the agent took signature of client on a blank proposal form which led to non-disclosure of material facts. 

The court has also asked IRDAI to modify its existing proposal forms to bring out to the notice of customers that concealing of material fact may lead to rejection of claim settlement.