Insurance company or broker may have to pay a penalty or compensation for mental harassment to the policyholder

These are some of the changes proposed in the draft Insurance Ombudsman Rules (Amendment) proposed by the Ministry of Finance. Aggrieved policyholder can be fined up to ₹1 lakh for mental harassment and fined up to ₹20 lakh by the insurance company or insurance broker. In addition, the Insurance Ombudsman registers every complaint within one […]