Is New India Assurance sitting on crores of extra premium collected due to a software glitch? It does not even know how many policyholders paid excess premium and is stonewalling all questions
Is New India Assurance trying every trick in the book to avoid returning crores worth of premium collected in a period of nine months due to a software glitch?
It all started with policyholder Anant Meghji Nandu giving a blank cheque to his New India Assurance agent in 2008 for his father's Mediclaim policy. The practice of giving a blank cheque to agent is widespread because there is usually a minor difference between the final premium amount and the quoted amount. In this case, there was additional Rs1,688 added to the cheque by the agent. Mr Nandu wrote to New India Assurance for an explanation in the huge variance between final premium and quoted premium, but they kept a stony silence. He filed an RTI query. He got a reply about a software glitch leading to overcharge and got a refund of the excess premium. He filed another RTI query to find out since when the overcharging was happening. The answer was 16 August 2007. The cat was out of the bag.
Mr Nandu quickly realized that there could be lakhs of policyholders who would be eligible for a refund which can run into crores of rupees. For the larger good, Mr Nandu wanted to ensure that all those who were overcharged also got a refund. He then tried to find about the refund data, but was met with stiff resistance from New India Assurance's Central Public Information Officer (CPIO). To downplay the issue, the company changed its stance. It now claimed that overcharging started only in 29 May 2008, which will mean fewer customers will be affected. But, will the Central Information Commissioner (CIC) accept this contention from the insurer?
The question is how will policyholders know that they were charged approximately Rs1,000-Rs1,500 extra premium in 2007-08? They won't, unless they are really astute in mediclaim premium calculation or happened to stumble across the discrepancy. In the age of technology, how difficult is it for the insurer to find out the policies they collected excess premium? Not difficult, unless they want to feign ignorance or software malfunction is a norm which precludes them from getting the data of policyholders' who paid excess premium.
This is case of heads I win, tails you lose. If by mistake a company charges a lower premium, it will soon detect it and come after you. But if the company overcharges, then they don't know how much extra premium was received. If you ask for refund you will get it; if you don't then you loss seems to be the New India's strategy. Is it fair?
Mr Nandu is a brave man for valiantly fighting the case for over three years at the cost of own money and time to help fellow Indians to get justice?
In our second part of the story we will report on New India Assurance's tactics to save face.
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Hum Tumhare Sath Hai. ! ! !
No one is controlling / monitoring such mess at higher ups of PSU/Govt.owned cos. Chairman / CEO and other senior officials have STRONG POLITICAL backing for them to function IGNORING PROFITABILITY OF ORGANISATIONS and harassment to general public/masses who have been paying premiums for couple of years.
CAN WE ALL OF US REQUEST AMIR KHAN / SATYAMEV JAYTE to expose insurance related mapractices affecting common citizen !!!!!
COMPANIES & ENTITIES PLAY WITH PEOPLE OF THIS COUNTRY UNFLINCHINGLY DESPITE TONNES OF LAWS, RULES.....!
AND THE TOPPING IS THE SO-CALLED REGULATORS, WHO DONT KNOW WHO, WHAT & HOW TO REGULATE ANYTHING NEED REGULATORS FOR THEMSELVES - WHETHER IT IS IRDS, TRAI, SEBI, AMFI OR HORDES OF SUCH CREATED ROBOTS!
A GRAHAK IN INDIA CAN ONLY JAGO & WATCH HIMSELF AT THE RECEIVING END. THERE IS NOTHING HE CAN DO FOR BEING LYNCHED BY ANY ENTITY INCLUDING GOVT. OF INDIA ITSELF - INCOME TAX DEPT, FOR EXAMPLE!
SAAREY JAHAN SE ACCHA HINDUSTAN HAMARA (JO BILKUL HI NAHI HAI)!
JAI HIND!
All these comments need to be handed over to the IRDA Chairman with a request that he get the response from the insurance cos and forward them to MLF.
I've mediclaim since 1990s.
I know of Mediclaim Policy 2007 because it forms a part of the current mediclaim policy document.
The issue of 1996 and migration needs to be clarified.
I too had a differnt exp with new India. In 2008, I didn't rx the loyalty disc which is 10% OF PREMIUM AMOUNT. My agent told me it is discontd. I still wrote to NIA redressal office with cc to IRDA. I immediately got response along with cheque of Rs 1600+ as adj of loyalty prem. So Pl Chk ghis angle also.
He persisted & recovered money.
Insurance company cancels policy if an iota of doubt of fraud is noticed.The Aam Adami has to go through legal battle.
The Insurance Act , done so many years ago,deals only with Insurers rights except section 45 -two years time in favor of Insured. Period.
The law is overwhelmingly in favor of Insurers.
The time, requirements & aspiration of Aam Adami have changed drastically.
The Utmost Good Faith is to be applied to both.
The Insurance Act must add Insureds rights for education,information, clarity of terms, representation & right to get justice from the Insurers without the trouble of going to legal recourse.
The Insurer lays down rules of play.When the Insurer has to keep his side of bargain , the Insurer sits as judge.
The party to contract becomes the judge to keep his side of bargain. It is like investigating agency ,it self becomes justice giver.
Even the regulator cannot do anything. The insurer may be warned only.
Only Independent investigator/ auditor can come to conclusion.
Mr. Naidu suffered for more than 2-3 years.
The justice be done as would have delivered if the insured had committed fraud
@) the company shall return the exorbitant amt with penal rate of interst.
3) IRDA must iterfere and direct the company to return the addl amt with penal rate of interest yo all policy holders
4) IRDA shall also direct other insurance companies to check the amt of premium and confirm that exact amt is being collected
The IRDA needs to pull up New India.
Charges for cheating by invoking S.420 need to be considered too.By a class action suit.