Insurance Rules, Myths & Legal Awareness
M(caps)any people buy insurance without understanding the rules, legal requirements,
and common misconceptions. This article explains insurance regulations,
government schemes, and legal consequences in a simple and clear way.
Insurance Rules & Regulations
IRDAI Regulation
IRDAI (Insurance Regulatory and Development Authority of India) regulates insurance companies and agents in India. Its main purpose is to protect policyholders and ensure fair insurance practices.
Motor Insurance Mandatory
As per government law, third-party motor insurance is mandatory for all vehicles. Driving without valid insurance can result in fines, penalties, or legal action.
Common Insurance Myths vs Facts
Fact: Insurance provides financial protection during emergencies.
Fact: Buying insurance early results in lower premiums and better coverage.
Government Insurance Schemes
- PMJJBY: Low-cost life insurance scheme by the Government of India.
- PMSBY: Accident insurance covering death and disability.
- Ayushman Bharat: Health insurance support for eligible families.
Legal Awareness & Consequences
- Wrong information can lead to claim rejection
- Insurance policy may be cancelled
- Paid premium may not be refunded
- Insurance fraud can result in legal penalties
In case of disputes, policyholders can approach the Insurance Ombudsman, Consumer Court, or official grievance portals for resolution.
