CONSUMER PROTECTION IN INSURANCE: A CRITICAL ANALYSIS ON POLICY WORDING & DISCLOSURE

AUTHOR – HRISHIDHA BHATIA, AMITY LAW SCHOOL, NOIDA, AMITY UNIVERSITY

BEST CITATION – HRISHIDHA BHATIA, CONSUMER PROTECTION IN INSURANCE: A CRITICAL ANALYSIS ON POLICY WORDING & DISCLOSURE, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 1081-1144, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This research critically examines the intricate relationship between consumer protection, policy wording, and disclosure within the insurance sector. Employing a doctrinal research methodology, the study delves into the legal frameworks, case law, and regulatory guidelines that govern these aspects, focusing particularly on how they influence consumer understanding and dispute resolution. The investigation highlights the paramount importance of clear policy wording and robust disclosure practices as fundamental mechanisms for protecting consumers in insurance transactions. It analyzes how ambiguities in policy documents and inadequate disclosures can lead to significant challenges for consumers, often resulting in disputes and dissatisfaction. Through a comprehensive review of legislation and judicial decisions across various jurisdictions, the study seeks to identify best practices and pinpoint areas where current regulations might be falling short. It proposes that enhanced clarity in policy wording and the enforcement of stringent disclosure requirements are crucial for reducing disputes and improving consumer trust in the insurance industry. The research explores the role of regulatory bodies in enforcing these standards and the impact of these regulations on the overall effectiveness of consumer protection measures. By synthesizing data from primary and secondary legal sources, the study provides a detailed assessment of the legal landscape as it pertains to consumer protection in insurance. The findings suggest that greater regulatory focus and improved consumer education on insurance policy terms are essential for fostering a more transparent and equitable insurance market.