Dealing with poor services by insurers, banks? Here's how much compensation you will get

New Delhi: Are you not happy with the services provided by your insurer or bank? If it so then you must know that financial service providers have to pay to customers in case they fail to adhere to deadlines. There have been numerous situations where money gets debited from your bank account but ATM fails to dispense the cash, or your insurer delays the payment of your claim.

Given below is low-down as to how much compensation you will get-

Life Insurance- If you have bought a life insurance policy, and your insurer fails to pay the death claims on time, then you can raise queries after 15 days of the claim filed. Your claim may approve or reject within 30 days from the date of receipt of relevant documents and clarifications. In such a situation, a penalty interest at the rate of 2 per cent above bank rate, which is currently 5.4 per cent, will be levied on the bank on the claim payable from the date of receipt of the last necessary document. 

In case of delay in delay in settling maturity, survival benefit and annuity claims, life insurer should intimate policyholders ahead of the due date, send a post-dated cheque, or credit proceeds to the registered account on the due date. A penalty at an interest rate of 2 per cent above bank rate payable from the date of receipt of the last necessary document.

Banks- In case the customer's account debited but cash not dispensed at ATM then the deadline for reversing the transaction is six days (date of the transaction plus 5 days). A penalty of Rs 100 per day will be levied. If the card account debited but the beneficiary card account not credited then the deadline to reverse the transaction is T+1 day. In this case penalty of Rs 100 per day of delay will be levied beyond the deadline.

In case the account debited but beneficiary account not credited in case of IMPS transfer and failed UPI transfer, the deadline for reversing transaction will be T+1 day. The penalty of Rs 100 per day of delay will be levied beyond the deadline.

Source: ET Now News