Will look into grievances about Covid-19 claims: IRDA assures HC

The assurance came in response to a Public Interest Litigation (PIL), which sought a probe into the irregularities committed by insurance companies in processing Covid-19 claims and the inaction of the IRDA to curb them

Mumbai: The Insurance Regulatory and Development Authority (IRDA) on Monday, assured the Bombay high court (HC) that it will look into grievances about the purported irregularities committed by insurance companies in processing Covid-related insurance claims.

Will look into grievances about Covid-19 claims: IRDA assures HC

The assurance came in response to a Public Interest Litigation (PIL), which sought a probe into the irregularities committed by insurance companies in processing Covid-19 claims and the inaction of the IRDA to curb them.

In the PIL through advocate Yusuf Iqbal Yusuf, Manav Seva Dham claimed that there had been blatant violations of the IRDA Act and RBI guidelines by insurance companies, and they had been involved in criminal activities like money laundering, misuse of policy holder’s money, paying excessive commissions to banks and agents. The PIL also alleged that the insurance companies arbitrarily rejected claims during the pandemic, thus putting policy holders already under financial stress in the lockdown.

The PIL was mentioned before the bench of justice AK Menon, and justice Makarand Karnik on Monday. The bench was informed that IRDA and their officials as also insurance companies against whom complaints of harassment had been received by the Trust were parties to the PIL.

Responding to the PIL, the counsel for IRDA informed the bench that the authority would treat the petition as a representation and address the grievances raised by the petitioner body. The bench accepted the assurance and disposed of the PIL.