Reading Material on Deficiencies in insurance services

Deficiency in Insurance Services under Consumer Protection Act 1986 – A Critical View & Challenges Abhay Butle Assistant Professor S.P. College of Law Chandrapur Maharashtra (India) The State was interested in diverting insurance funds for developmental purpose or at least to stop insurance companies from investing the funds in other business enterprises, which might affect prospect of the insured people and property. However, effective the law might be, the control over the funds used and their investment was difficult. Despite prescribing the goals, objectives and directives, it was not possible for the government to supervise the investment and control the funds of insurance companies. The advantages of insurance are being increasingly realized by people all over the world. For instance everybody is aware that life insurance not only inculcates the habit of saving but also provides protection and security to the insured. With the phenomenal growth of trade commerce and industry the modern day entrepreneur also believes that it is in his own interest to have and insurance cover .The business of insurance has undoubtedly developed at a fast pace over the year. It needs however to be seen whether side by side the insurance companies have also achieved consumer satisfaction .It is perhaps of the term service in the Consumer Protection Act 1986 the intention undoubtedly was to provide cheap and expeditious redresses to the aggrieved consumers presumably resenting judicial scrutiny of their actions. The public sector insurance corporations as well as the private insurance companies also challenged the jurisdiction of consumer redressal agencies set up under the Consumer Protection Act 1986 to entertain disputes relating to Insurance service. The act however restricts the ambit and scope of the power of the redressal agencies to award compensation to the aggrieved policy holder. It is only when there is deficiency in the service rendered to him and he has suffered any loss or injury due to the negligence of the insurers that relief by way of compensation can be granted to him. In other words the consumer is entitled to relief under the Act if and only if he establishes that he hired the service complained of for consideration and that the service provided to his has a deficiency.

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