NATIONAL CONSUMER COMMISSION CRITICISES “COERCING” INSURERS

India’s National Consumer Commission has criticised insurers for harassing customers and compelling them to sign agreements that any compensation paid is a full and final payment. The NCC Bench said that “this type of coercive method adopted by the insurance companies requires to be curtailed and stopped”, it said. The observations were made after a ruling in which a motor policy holder was “forced” to accept a final payment of INR625,000 ($15,600). The claimant alleged he was subjected to coercive bargaining by the New India Assurance Co. The Commission noted that “at the time of taking premium, insurance agents move heaven and earth and see that the consumer pays the premium as early as possible. Thereafter, when the amount is required to be reimbursed, all sorts of tactics are adopted by them to deny the insured his legitimate claim”, the Bench said.