The consumer affairs ministry, which is preparing the draft, would strive to introduce the amendment bill in the next session of Parliament, Consumer Affairs Secretary Lalit Mansingh told PTI on the sidelines of an insurance seminar.
The move would protect policy holders from certain clauses incorporated in the detailed policy documents.
The proposed bill is meant to empower consumer courts to strike down 'unfair' clauses in the agreement between customers and companies, Mansingh said. Citing an example, he said there is a general impression that mediclaim was being abused by some but that cannot be a pretext for denying claims to genuine customers on 'flimsy' clauses in the policy agreement.
The amendment will not relate to the insurance sector only and will be applicable across sectors, Mansingh added.
The amendment will basically give powers to consumer courts to strike down what is technically called "unfair terms of contract," on the basis of which companies may deny due share to consumers.
