LAHORE: Some insurance companies are not complying with the condition of translating the policy documents in Urdu language despite clear-cut instructions from the office of Federal Insurance Ombudsman, said sources.
Instead the insurance companies are keeping policy documents misleading and deceptive to mislead or deceive the policyholders, they added.
Most of the pages are yet in English using the smallest font, which can only be read with the help of magnifying glasses. Only a little portion of the documents is in Urdu language to satisfy the FIO, who has issued clear instructions for not only using readable font size but also translating the whole of the policy documents in Urdu to end ambiguity on the part of policyholders.
Furthermore, they have pointed out that the technical words used in the policy documents are seldom explained.
They said the policy schedule is often deceptive on the face of it as in column ‘benefit type’ the documents contain the commencement date of the secured life plan but in the second column under the termination date ‘N/A’ is mentioned without explaining the meaning of the same.
How can agent describe or explain this part of the policy to the policyholders who is even educated person if the meanings are not mentioned on the documents. If the policyholder is an illiterate, he would be at the mercy of the insurance company for the rest of the life.
Normally the insurance agents hired by the insurance companies have the qualification of matric or at the most FA/Intermediate, and it is difficult even for them to understand these documents. Resultantly, it is not possible for them to make the necessary disclosure and explain the packages to the policyholder, who is totally illiterate or having the qualifications of matric etc.
They said the insurance sector is totally ignoring the ratio of education in the country and interests of the policyholders by clearly violating the instructions from the FIO as well as the provisions of the law and prefer to adopt misleading and deceptive market conduct to sell the package.
The sources have further said that the business of insurance is based on the principle of ‘utmost good faith’ and the law requires each party to act towards the other party in the same spirit.
Copyright Business Recorder, 2023