Insurance Limit of Rs. 30 Lakh in Insurance Compensation is Required

Insurance Ombudsman (Mumbai Metropolitan Area rather than Thane and Navi Mumbai), Milind Kharat – the Insurance Lokpal office requires raising the limit of Rs. 30 Lakh on the compensation amount to the insured, as per the Insurance Ombudsman Law, 2017. While speaking at the Insurance Ombudsman Day Function of Ombudsman Office, insurance cover of Rs. 1 Crore is now very common in case of Personal Accident, Term Insurance and Health Insurance policies. However, the cap on the compensation is Rs. 30 Lakh.

Insurance Ombudsman:

The source also put lights on the need to increase the level of awareness amongst the insurance consumers. “A lot of times, they agree with the insurance company’s decision as they don’t know that they can get hold of the Lokpal”, he said. Out of about 27,808 complaints operated during 2017-18, the office is responsible for about 53.2 per cent, i.e. 24,795 complaints of life insurance. However, the number for non-life insurance is about 46.8 per cent, i.e. 13,013 complaints.

MML Verma, the General Secretary of Executive Council said, “In case of the non-life policies, health insurance plans are related to over 90 per cent complaints.” In the Life Insurance segment, HDFC (2,081), Bharti-AXA Life (1,105), Life Insurance Corporation (LIC) India (3,217), Exide Life (1,022) and Reliance Nippon Life (1,357) accredited the large portion of this set of complaints.