The Ernakulam District Consumer Disputes Redressal Commission has asked insurance companies to consider making the terms and conditions of policies available in vernacular languages. The Commission issued a directive in this regard to the Insurance Regulatory and Development Authority (IRDA). The move is aimed at ensuring fairness and transparency for policyholders with limited language skills.
The Commission suggested that the IRDA consider issuing directions/ advisories to all policyholders on making available policy contracts, key product information, and critical clauses on lapse/revival/ surrender in a vernacular language chosen by the proposer.
The Commission made the observation in its order dismissing a complaint filed by Abdul Nazar K.P., a native of Muppathadam, Ernakulam, against Kotak Mahindra Old Mutual Life Insurance Limited.
The panel, comprising D.B. Binu, president, and members V. Ramachandran and Sreevidhia T.N., pointed out that the complainant, who was unable to read and understand the terms of the policy, as it was in English, had a misunderstanding that the premium paid would be refunded upon completion of the term.
According to the terms of the policy, a minimum of three annual premiums was to be paid to receive the surrender value. However, the complainant had paid only two premiums. The Commission dismissed the complaint in the absence of a breach of policy provisions and breach of service or unfair trade practices on the part of the insurance company, a statement issued here said.
Published – October 31, 2025 10:23 pm IST
