Why is written communication so important? The following case shows the significance of written communication in insurance related disputes.

Dispute between                Rehana Sultan v/s Bajaj Allianz

Award/Complaint no        IO/BHP/R/GI/0210/2019-20

Cause of dispute                Wrong cancellation of policy

Amount of claim               

Relief Sought                     400000

Award in favour of           Insured

Date of Award/Order       10/02/2020

Location                             Bhopal

Brief facts:

The insurer stated that the policy was as per request of the insured. The complainant contended that no such request was made to the insurer.

The insurer further contended that the premium was refunded and that the complainant did not approach its grievance cell. Complaint should have been lodged with the Ombudsman within one year but that has not been done. So the complaint should be dismissed.

Ombudsman's ruling:

The complainant has submitted proof of letters sent by her to the insurer. The complainant approached this office within one year so that rule has also not been violated.

Insurer could not submit any proof of the request made by the complainant for cancellation of the policy. Insurer has claimed that the complainant made the request telephonically but it could not provide any record of the call.

Clause D.3 of the policy states that any communication to the insurer must be made in writing. Therefore a telephonic request is a breach of the above policy condition. Hence cancellation of the policy must be revoked by the insurer. And claim made should e settled as per terms and conditions of the policy.

Remarks: Clearly the communication with the insurer must be in writing.