(i) Non-participation/ unsatisfactory participation of certain insurance companies in Lok Adalats/MACT (ii) Servicing of policy holders.
This is issued in accordance with the power vested under Section 34 of Insurance Act, 1938, and in compliance with the order of the Hon’ble High Court of Tripura dated 12.07.2017 passed in connection with the Writ Petition vide W.P (C) (PIL) No. .04/2017.
The Authority has received serious observations made by the Hon’ble High Court of Tripura regarding non-participation/ unsatisfactory participation of certain insurance companies in Lok Adalats including due to non-receipt of summons due to proper address for correspondence not being provided. The Hon’ble Court has also observed poor service to policy holders in some cases.
Keeping in view, the seriousness of the issues and with a view to strengthen the faith of the citizens upon the insurance sector, all the insurance companies shall mandatorily ensure the following: –
1. Attend MACT/ Court cases promptly and properly whenever summons are received from the Hon’ble Courts;
2. Participate in Lok Adalats whenever they are held;
3. Adhere to IRDAI (Protection of Policy Holders’ Interest) Regulations, 2017 strictly.
4. Maintain a correspondence office address for communication with the policy holders especially for dealing with claim matters including proper service of summons.
In case of violation of any of these instructions/ directions or on receipt of any complaint in any of these aspects, IRDAI in exercise of the power conferred under section 34 of Insurance Act, 1938, would take action as deemed necessary upon the defaulting insurer.
