Insurance PolicyHolder Rights in India
Insurance policyholder in India enjoys certain rights as per law. Here is a list of some of these rights.
Complete knowledge of the policy/plan
Insurance Regulatory and Development Authority (IRDA) has laid down the stringent instructions to be followed by the insurance company or agent to provide the complete information about the policy to the buyer. A policyholder can also demand any information about the policies he owns from the agent as well as the insurance company.
Mode of Payment of Premium
Mode of payment of insurance premium can be changed by the policyholder. He can switch from cheques to direct debit or through ECS instructions to their banks.
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Modifications in Policy by Insurance PolicyHolder
Both Sum Insured Amount and Term of the insurance can be increased or decreased by the policyholder. This may result in increased or decreased insurance premium.
Partial Withdrawn of Investment
ULIP (Unit Linked Investment Plan) Holder can partially withdraw their invested amount. ULIP Holder can also switch from one ULIP to another without any restrictions or any additional charges/costs.
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Surrendering of Policy
Insurance Policy can be surrendered after the end of prescribed lock-in-period which is normally 3 years, from the commencement of the policy.
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Canceling the Insurance Policy
Insurance Policy can be canceled by Policy Holder within 15 days from the receipt of the documents if it does not fit the requirements of the Policy Holder.
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Procedure for a claim
In case policyholder files for a claim and furnished all the required documents, Insurance Company can demand any further information or document within 15 days from the filing of documents by the policyholder. The Insurance Company is abide by the law to pay the claim within 30 days of receiving all the necessary documents and information but in case any dispute arises, the insurance company needs to provide specific reasons for the dispute.