Consumer authority writes to RBI, IRDA to look into complaints against insurers over failed transactions

NEW DELHI: The Central Consumer Protection Authority (CCPA) has written to the Reserve Bank of India (RBI) and the insurance regulator, IRDA to look into complaints of failed transactions but money not reversed, delay in crediting the amount and inordinate time taken in processing of insurance claims.\

It has urged the IRDA to take up the issue of addressing consumer grievances with the insurance companies and direct them to adhere to the timelines stipulated in the IRDAI Protection of Policyholders’ Interest Regulations, 2017.

The CCPA wrote to the IRDA and RBI recently after analysing consumer grievances received in the National Consumer Helpline (NCH), which is being run by the consumer affairs department. The CCPA analysed complaints lodged between April and December 20.

The NCH data show that out of 6,018 grievances registered relating to the insurance sector, nearly 1,200 pertained to delay in getting the claim amount. “You may agree that the two most important factors that influence consumer satisfaction in the insurance sector - aside from the perceived fairness of the settlement itself - are the speed and transparency of the claims process,” CCPA chief commissioner, Nidhi Khare wrote to IRDA chairman, S C Khuntia. She said the insurance companies should adhere to the timelines.

Similarly, the NCH has received 2,850 complaints relating to delay in crediting money deducted in case of failed transactions during these nine months.

The CCPA has written to RBI deputy governor M K Jain highlighting that a number of grievances have been received pertaining to failed or cancelled transactions and money not refunded during the prescribed period. “While using inter-banking services by the consumers such as IMPS and UPI, transactions failed, but not not revered or transferred, although money deducted from the bank or wallet account of the consumers. Although banks are crediting the amount into the consumer’s or beneficiary’s accounts, it’s not being done in the prescribed timeline as directed in the RBI guidelines.”

Source: The Times of India