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Consumer Protection In Banking And Insurance: Legal Perspective

Tanmay Jain, Bennett University (Times of India Group)

I. Introduction

In the modern financial environment, consumer protection in the banking and insurance sectors is crucial. As the financial sector undergoes continuous transformation due to technological breakthroughs and globalisation, protecting the rights and interests of customers becomes an essential aspect of preserving stability and confidence. The legislative structures that oversee these industries are essential for setting standards, guaranteeing ethical behaviour, and holding insurance and financial firms responsible for their deeds.

The insurance and banking industries play crucial roles in the larger financial system by guarding people's assets and providing security against unanticipated dangers. Because customers trust these organisations with their money, it is critical to create strong legal frameworks that protect moral behaviour and offer channels of appeal in the event of disagreements or wrongdoing.

A. Background

Over time, there have been substantial changes to the banking and insurance industries' approaches to consumer protection. Past examples of financial crises and wrongdoing have led legislators and regulatory agencies to pass extensive laws designed to strengthen consumer rights. For example, in the wake of the global financial crisis of 2008, there was a greater emphasis on reviewing and fortifying consumer protection laws in order to stop systemic failures from happening again. The Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in reaction to the 2008 financial crisis, is a key piece of legislation that has been implemented in the banking industry to improve consumer protection, accountability, and openness. Comparably, the insurance sector has seen the development of legislative frameworks, with laws such as the Insurance Regulatory and Development Authority Act (IRDA) designed to provide policyholders with a safe and equitable environment.


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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