What will you do if a wrong policy has been sold to you?
Suppose an agent sold you a policy saying wrong benefits & returns or sell you a policy saying it as a regular premium policy but it is a single premium policy. What you will do then? Will you continue the same policy or leave that policy after paying one premium and considering this loss was in your destiny. There is another option to fight for your rights.
However, there are 15 days free lock-in period for almost all the policies, under which one can cancel his/her policy get the money back which you have paid to the insurance company. But if this lock-in period is over it becomes tough to cancel the policy and get the money back.
Mr. Mathur from Delhi was mis-sold a policy. In actual the policy was a single premium policy in which he had to pay the premium yearly once, but at the time of purchasing the policy, he was told that the policy was a monthly premium policy. Mr. Mathur gets to know the reality after the lock-in period was over. He went to providers office but they refused to do anything as there was a sign of Mr. Mathur on the documents.
Rights of an Insurance Policy Holder
- A policyholder has the right to know all the details of the policy including the terms & conditions.
- A policyholder has all the rights to receive the policy terms and conditions in writing in the form of policy documents.
- A policyholder can cancel his/her insurance policy within 15 days which is known as the free lock-in period, from the date of purchase of the policy.
- A policyholder can return the policy stating the objection.
- During this time a policyholder is entitled to get a refund of the premium paid.
- The nominee of your policy has all the rights to claim the death benefit amount in case of death of the policyholder.
Duties of the Policyholder before Purchasing the Policy
- A policyholder should do proper research for his/her policy among all the available policies in the market considering his/her requirements.
- Before you have a policy it is important to analyse your affordability i.e. analysing how much premium you can pay without disturbing your finances much.
- Never sign the policy documents without reading and understanding the terms and conditions properly.
- Proving the correct nominee details is also very important, in case of any incorrect information, your nominee will not be able to get the benefits in the case when you are not there.
Duties after Buying the Policy
- Check for any document which you need to submit at after getting the approval or any document which you couldn’t submit at the time of documents submission.
- You should receive your policy documents within 15 days, in case you don’t receive then you need to contact the policy provider.
- Check & compare the policy documents carefully for the benefits, terms, and conditions with what you were told at the time of policy purchase. In case you find a difference, contact to the policy provider for clarification.
Duties of the Policyholder for the Entire Tenure
- Always pay the premium of your policy on time, try not to miss the due date for your policy.
- Always update your insurer in case of any personal details change, such as an address, bank account number, etc.
- A policyholder can change his/her nominee anytime according to his/her own wish. To change they just need to inform the insurer and fill a form regarding it.
- In case your policy document is lost, then, in that case, you need to inform your policy provider and get the duplicate documents.
- Cooperate with the insurer at the time of claim.