Mis-Selling Of Insurance And Consumer Protection
- IJLLR Journal
- Apr 21
- 1 min read
Magizhva. R, B.A.LL.B. (Hons), LL.M., Tamilnadu National Law University
ABSTRACT
The mis-selling of the insurance policies is a very serious matter to be concerned about in the insurance sector of India. Mis-selling is an immoral and unethical act which misuses consumers by selling insurance policies without revealing or misrepresenting the policy's features or failing to disclose relevant issues to the customer. Even though there are firm legal regulations which are governed by the Indian Regulatory and Development Authority of India Act,1999, The Consumer Protection Act, 2109 and by the IRDAI Regulations, instances of Mis-selling still happen at a regular interval. These acts lead to very serious consequences, such as monetary loss, a decrease in public confidence in the insurance sector, and lapsing of the policies, which can occur when consumers are unable to meet their requirements. This research paper will analyse the extent of all the legal legislations and regulations that ensure the protection of the consumers and the liability of the insurance companies or the insurance agents, and the redressal mechanism which the affected consumers have to address their grievances. This paper also focuses on the reason why does the insurance agents does the unethical act of doing it, such as lack of education on selling the insurances and on consumer protection, the pressure put on the agents to reach the goal levels in order to receives incentives. This research aims to bring out the gap between the frameworks and the implementation of the legislations, which makes the liability more stringent and ensures the protection of the consumer in India within the Insurance Sector.
Keywords: Mis-selling, Insurance agents, Insurance Companies, Liability, Consumer Protection.
