National Consumer Rights Day, 24th December 2022 – Things and facts to know

Everyone looks at getting knowledge about different kinds of insurance plans. However, people hardly consider seeking awareness about the rights of insurance policyholders. Let us discuss them in this post.

While it is important to be aware of the various insurance policies and investment plans available in the market, it is equally important to be aware of the rights of policyholders. Knowing the rights well ensures that the policyholders make the right decisions and choices in terms of their investment.

National Consumer Rights Day is observed on 24 December every year to make consumers aware of their rights and responsibilities. On this occasion, which is just round the corner, let us discuss the rights of consumers of insurance policyholders to help in making better investment plans.

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What is National Consumer Rights Day?

The Consumer Protection Act in India was enacted on 24 December, 1986 and was updated on 6 August, 2019 to make sure that the rights of consumers in the country do not go unheard. The act was passed to ensure the safety of customers against exploitation. Cases like defective products, fraudulent service, unfair business etc. are taken care of under the act.

The National Consumer Rights Day, India celebrates the rights of consumers and promotes them throughout the country every year. With e-commerce becoming so popular, staying better informed about the rights and responsibilities as consumers is important. The Theme of National Consumer Rights Day, 2022 is ‘Alternate Consumer Grievance/Dispute Redressal’.

Let us discuss some interesting consumer rights facts below.

Interesting Consumer Rights Facts to Know

Rights of Consumers as Insurance Policyholders

Below are some rights that you as consumers of insurance policies should be well aware of:

#1 Option of policy cancellation during the Free-Look Period

The consumer should know that they have the option of cancelling the insurance policy if they are not satisfied with the terms and conditions of the policy after going through the documents.

Moreover, if the insured feels that the policy would not suffice their needs properly, they can still cancel the policy within 15 days of free-look period.

To proceed with the policy cancellation, the policyholder should communicate and write to the insurer requesting the cancellation. There is a format prescribed by insurers where the policy details need to be filled along with stating the reason for cancelling the policy. Once the insurer receives your written application to cancel the policy, they take action and refund your money after deducting some charges such as stamp duty, medical examination etc.

#2 Option to change mode and frequency of paying premium 

If you have opted for ‘cheque’ as your preferred mode of payment while purchasing the policy. And later you want to change it to something else like direct debit or ECS, you can do that by informing the insurer about the same.  With automatic deduction directly from your account, you can stay free of worry about remembering the date of premium payment. Thus, it is a hassle-free transaction mode which eliminates the danger of policy lapse. The policyholder can also change the frequency of paying the premium as per their preference to monthly, semi-annually or annual payment.

#3 Nominee can be changed as per need 

Nominee is the beneficiary of the policy who receives the pay-out on the demise of the insured. The insured is required to fill the nominee details in the proposal form while buying insurance, which can be changed as many times as the policyholder requires. So, if the policyholder feels that someone else should receive the death benefit, the person can change the details of the nominee accordingly. The insured can also appoint more than one nominee and divide the sum assured among them.

#4 Option of getting duplicate policy copy in case of loss of documents

If the policyholder’s original insurance copy gets lost, he/she can seek a duplicate copy from the insurer. The duplicate copy is equivalent to the original with the same rights except for the free-look period. All you need is to visit the insurer and submit an application on writing about the loss of documents. You must mention the details of the policy including date of issuance, policy number, type of cover and how it got lost.

You may also have to publish an ad at the local newspaper at your expense giving details of the loss of policy papers. Further, you may have to sign a bond of indemnity with the insurance company before getting the duplicate copy of the policy.

Read More: Key Features and Benefits of An e-Insurance Account

To Conclude

The keystone of insurance and other investments is to support dependents of the insured monetarily in the event of an untoward situation. These consumer rights are there to support customers in benefiting and making the best of the policies. The National Consumer Rights Day in India is celebrated to create awareness about the same.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

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