This has reference to your letter no. Mum/32244 dated 25^th June, 2010, in response to our letter ref.2/CA/Insp/NL/2010-11 regarding the above complaint. It is noted that the claim had been settled on humanitarian grounds. However, the Authority is constrained to make the following observations :-

 

1.       In the cited claim, your Company has sent a letter to the insured calling for documents and then closed the claim as ‘no claim’ on not receiving the same. This is not a fair treatment of the customer.   The Authority is of the considered view that your Company ought to have sent at least two reminders for non-submission of documents before deciding to treat the claim as ‘no-claim’ and informing the insured/beneficiary thereof. You are hereby directed to incorporate this practice in your claims procedure immediately and confirm to the Authority within 15 days of receipt of this letter.

 

2.       There has been a delay of nearly 4 months in your Company’s response to the Authority on the cited complaint which does not speak of an effective Grievance Re-dressal Mechanism. While advising you to exercise due diligence in responding to Authority’s communications in the future, your attention is drawn to IRDA’s circular ref. Ref: 3/CA/GRV/GrvRedr Guidelines / YPB/10-11    dated 27^th July, 2010 wherein you are   required to acknowledge a complaint (to the complainant)                                                         

within 3 days and also resolve the issue within 14 days, under intimation to the Authority.    You are advised to follow these guidelines scrupulously.

 

Thanking you,

 

Yours faithfully,