Case Studies on Protection of Rights of Insurance Policy Holders with Special Reference to Kolhapur District Consumer Forum

Abstract

It is an important right of every consumer to get what he pays for. He has rights against the
manufacture, retailer at the same time provider of services as well. Insurance Services is not an
exception to it. Insurance Companies are regulated by, Insurance Regulatory and Development
Authority Act, 1999 and Insurance Act, 1938. Supreme Court has interpreted Policy Holder as a
‘Consumer’ so, Consumer Protection Act is equally applicable to policy holders as well. Important
objective of Consumer Protection Act is consumer’s welfare and protection of their rights. Every
consumer has right to information about the product before buying, he has freedom of speech and
expression as well. Where there is a right, there is a remedy. Consumer is having right to be heard by
competent forum. He can exercise this right by filing consumer case in the appropriate forum.
Insurance companies are obliged with providing quick and quality services to the policy holders.
When policy holder makes claim, generally in majority of cases he is in trauma or suffering. Unlawful
denial of their claim makes them to suffer more. So, Insurance Company should act lawfully.
Whenever any Insurance Company acts arbitrarily or unlawfully, policy holder has the right to knock
the door of court (Consumer Court). On proving violation of his right, Insurance Company is liable
for providing efficient service and compensation for previous deficient service.