A Hyderabad consumer commission has ruled in favor of a 73-year-old retired professor, directing a refund of ₹10 lakh for an insurance policy it found was sold without free and informed consent.
The bank and the insurer were also ordered to pay ₹60,000 in compensation and costs to the complainant. The decision emphasizes that mere signatures on policy documents do not establish that the policyholder understood the terms or had given informed consent.
According to the commission, the policy was marketed to an elderly individual without adequate disclosure of terms and without ensuring the customer clearly understood the product. The ruling underscores the obligation to obtain free, prior and informed consent in insurance transactions involving senior citizens.
Hyderabad’s consumer commission’s order adds to ongoing scrutiny of insurance mis-selling practices and places a duty on financial institutions and insurers to communicate clearly and verify customers’ understanding before selling a policy.
- Refund ordered: ₹10 lakh
- Compensation and costs: ₹60,000