Published Paper Details:

It is admitted that life insurance policy holder is �consumer� under the Consumer Protection Act, 1986 and is entitled to seek redressal in consumer courts established under the Consumer Protection Act. It is usually observed that Insurance Companies do not tell the demerits of the policies while selling their Insurance products/Schemes. Those policies are sold under wrong or misrepresentation of facts. The agents also do not provide customized service once their policy is sold rather they adopt callous attitude towards the policy holders and they become totally indifferent. They put many hidden charges and impose them immediately after the policy is sold. In case of prepayment cases, they impose penalty about which they never tell to a customer. Many agents have been found to be charging excess from illiterate people. When the policy matures, they put temporary or fictitious obstacles to delay the payment. Many times notices for periodical premiums are not sent by them with the intention that let the policy lapse & then they would be helpless to entertain the claim and the amount in the account is encroached upon by them and is not paid to the policy holder. Lot of cases have been filed in consumer courts and many decisions have gone against the insurance companies. There is quite an ample scope for the consumers to make use of consumer forums to stop their exploitation by these insurance companies. Looking into this, the researcher has made a survey in the Belgaum District of Karnataka State about Grievances of policy holders in Insurance sector and conclusions are drawn.