life insurance
kirtirani sole
(Querist) 05 March 2010
This query is : Resolved
Resp.Sir/Madam
When other institutions entered into life insurance business in India? What are its effects? Any information regarding it.
Which are those companies?
2nd qtn is what is the mechanism to settle dispute between insured & insurer at earlier stage i.e. at branch level by officers without going to any court or ombudsman?
Raj Kumar Makkad
(Expert) 05 March 2010
other institutions means??????
Insured can make representation to the insurance company at branch level and Branch Officers are duty bound to resolve his grievance at their own level. There is no specific mechanism except this general practice as per Insurance Act.
Parveen Kr. Aggarwal
(Expert) 06 March 2010
The Life Insurance Corporation of India came into existence due to promulgation of Ordinance dated 19.01.1956 followed by an Act in the same year and it enjoyed absolute monopoly in the field of life insurance till the reforms in financial sector begun in the early 90s which touched Insurance also. The Govt of India set up a committee with Sh. R.N. Malhotra as the Chairaman to recommend suitable reforms in this sector. As a consequence of the recommendation of the Malhotra Committee, the Government of India set up an Insurance Regulatory Authority. On the 2nd December, 1999, Indian Parliament passed, Insurance Regulatory and Development Act, throwing open the Insurance sector to Banks and other private parties. The RBI also came out with draft guidelines for entry to this sector. This came to be seen as a major step in financial sector reforms, which introduced, for the first time since nationalisation of the insurance business, an element of competition in this sector. A number of companies have entered this field thereafter.
Settlement meetings (like Lok Adalats) in the offices of the Insurance Companies are organised for settlement of such disputes.
