Thursday, 28 February 2013

Term Life Insurance – Not an unregulated industry




Life insurance is almost a basic need. It’s the first step in Personal Financial Planning. It fulfills different purposes for different people and can provide valuable benefits if you make your choices carefully.
 Like many think mistakenly, it is not just for financial protection in the event of untimely death of a family breadwinner. Term Life Insurance can also be a comprehensive wealth accumulation solution that benefits almost all. Whether you are young or old, rich or poor, employed or a business person - you can get a plan tailor made for you. 

To ensure that this objective is met in totality, IRDA has set up various checks and balances.  In case of any claim dispute, you/ the nominee can approach the Insurance Ombudsman which is a non-judicial authority formed. The Insurance Ombudsman has been empowered to redress claim disputes up to INR 20 lakh within a limited timeframe. With 12 centers spread across the country, your insurer must update you (through the policy document) about the Insurance Ombudsman in whose jurisdiction its office falls for the purpose of grievance redressal. The decision passed by the Ombudsman is binding on the insurer, though not on you/ nominee. In case you are still dissatisfied, you/nominee can approach the judiciary or the Consumer Forum as well. 

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