Policyholders’ get more chance for disputing claim amounts-BS

Insurance Claim Form

Imagine your car was involved in an accident and you claim for total loss under your motor insurance. You claim Rs 1 lakh but your general insurance company says you are eligible only to get Rs 75,000 due to some deductibles.

Instead of wasting time over arguing over the amount, you decide to accept Rs 50,000 and sign the ‘discharge voucher’ or ‘settlement intimation voucher’ hoping to later lodge a complaint or go to court if required.

But when the matter reaches court, the company says that because you have signed the voucher, the claim has been settled in full and you have agreed to it, thereby giving up your right to contest the claim.

But now this may change. In a recent guideline, the Insurance Regulatory Authority of India (Irdai) said, “…execution of such vouchers does not foreclose the rights of policy holder to seek higher compensation before any judicial fora or any other fora established by law”.

This is good for policyholders, says Arvind Laddha CEO, Vantage Insurance brokers.

Excerpt from article published in Business Standard- To read the full article please click here