On Monday, the Insurance Regulatory and Development Authority (IRDA) agreed to look into the Covid-19 policy claims that insurance companies rejected.
This comes after public interest litigation was filed by Manav Seva Dham (petitioner), a social services trust, against various insurance companies before the Bombay High Court.
According to the petition, it has been alleged that various insurance providers engaged in several offences, misusing policyholder funds, rerouting funds through other businesses, and paying exorbitant overriding commissions to banks and their agents.
“The insurance agency are unjustly denying their Covid-19-related claims, it guaranteed, even in the midst of the ongoing pandemic Covid-19, in which the country’s residents have not only lost their jobs but also depleted their cash”, it said.
Additionally, the petitioner submitted that Insurance companies had caused wrongful losses to the policyholders.