Financial Rights

FINANCIAL RIGHTS

Author: Ms. Kashish Khurana, School of Law Jagran Lakecity University, Bhopal.

Generally people are not aware of all the rights that are available to them. Even if we are aware, we only know about those rights which have fundamental, legal and constitutional importance. So, let’s get some knowledge about the financial rights that we possess.

DEFINITION:-

A financial right is a right available to a person to know how much fund a distributor or insurance agent earns from the financial products sold to them.[1]

The citizen of the country should not only be aware of the rights but also act upon if their rights are breached or infringed.

FINANCIAL RIGHTS

ET Wealth announced ten financial rights on the occasion of 68^th Republic Day.[2] Those rights are:-

1. Right to know commission paid:

Every person to whom the insurance has been sold has the right to know that how much the insurance distributor or agents have earned by selling the so-called policy to the policyholder. A mutual fund distributor’s commission, paid by the fund company, is also disclosed in the policy holder’s account. The commission of the insurance agents depends upon the premium of the product they have been selling. Ulip commissions are displayed in the benefit illustration accompanying the proposal form.

• Right to return insurance policy:

A policyholder has the right to return the policy holding for 3 years or more within 15 days of receiving the policy documents if deemed inappropriate. The period within which we can return the policy is known as the Free Look Period. This period applies to all life insurance policies and health insurance policies. To return the policy the policyholder needs to submit an application to the insurance company. Most of the companies also make available an online form for the purpose.

• Right not to harassed by the lenders

In case the policyholder makes default in paying the amount of the insurance policy, the lender has no right to harass the policyholder. It is the duty of the lender to give notice to the policyholder 60 days before taking any action. During that period the policyholder can present their case to the authority. The lender can only contact you between 7 am and 7 pm. They have no right to harass you by contacting you again and again at any point in time. If any lender does so, you have the right to the complaint it to the higher authorities or bank. The policyholder also has the right to file an FIR against the lender.

• Right not to pay for the card frauds.

The policyholder has the right to not pay for the illegal or unauthorized transactions made by your debit/credit card. But they need to show proper evidence and prove that it was not them who made the transaction. The policyholder can report immediately to the police station and also can block the card by informing the respective bank. Most of the cards nowadays come with a zero liability feature that protects the customers from the frauds.

• Right to life insurance claims.

According to an IRDAI (Insurance Regulatory and Development Authority of India) directive, a policyholder has a right to proceed against the claim of such a life insurance policy which has exceeded 3 years. There are no exceptions to this rule. Every insurance company has this three-year window to check the authenticity of the policyholder, after which the claims have to be settled. This rule is also applicable if the policyholder expires within three years and the claim is made after the completion of three years.

• Right to a tax refund in 90 days.

Every person who pays tax has the right to get a refund of the tax within a period of 90 days. If a delay is reported in filing the refund request, an interest of 0.5% would be charged every month on the refund amount. The person still gets the interest even if the refund becomes delay. If it does not happen within 90 days, then the person is free to approach the income tax office to get a refund.

• Right to possession of the property on time.

When a person buys a property he is entitled to its possession in stipulated time. If the builder makes a delay in delivering the property and the person pays the home loan. The dealer is entitled to pay the person the amount with interest the same as paid by the person as his EMI. He can also seek a refund from the dealer. The dealer or the builder has to return within 45 days. If any issue arises, the person has the right to contact the Real Estate agencies. They have to make a refund within 60 days.

• Right to locker facilities.

Every person has a right to own a locker in the bank in which they have an account of their own. It is not necessary to have a savings account or any association to own a locker. The following bank only has to right to request you to make a fixed deposit for 3 years for the usage of its locker facilities. Also, the person cannot be forced to buy a product in exchange for usage of its locker. If they do so, the aggrieved person has the authority to make a complaint to the serving cell for the same.

• Right to not pay a service charge.

Most of the restaurants nowadays charge for their service in the bills they provide to the visitor. The visitor has the right to refuse to pay the service charge that they charge for their service. Now it is not at all necessary to pay hefty charges for bad services.

1. The right to know fund mandate change.

Every investor has the right to get informed about any change made investment mandate of the mutual fund. Also, the investors have the right to exit before making any changes, if any. This right is only available if the insurance company is planning to make any changes in their policies and the investor is not interested in the same.

SOME EXCEPTIONS OF THESE RIGHTS

Financial rights are available to individuals and for the normal married couple. Because same-sex couples are still taboos for society. It is not easy for the society to accept these things but the society will have to today or some other day. The main drawbacks that they face are listed below:-

• For any couples to prove their union, the proof is required. In a lack of such proof of union, LGBTQ+ partners lack their financial rights.
• The people of these communities need a higher rate of savings.
• There is no life insurance policy covered for gay and lesbian couples.
• Normal married couples can make a deed, gifts of property and other assets to each other. But, in the case of LGBTQ+ they cannot gift each other in excess of Rs.50,000[3].

CONCLUSION

Rights are the basic requirement of every individual. Not just fundamental rights, other rights are also important. The financial right is also an important right in today’s aspect.

A financial right is generally provided to individuals to make them understand how their money has been used.

These rights were introduced by the government after 68 years of independence for a better living of each and every individual.

These rights include rights against every dealer, distributor, an insurance company or restaurant owners.

Life insurance and health insurance claims are going to get easier now.

Despite many advantages, there is a big drawback that LGBTQ+ communities couples are not entitled to any claims under insurance as they do not have valid proof of their union.

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[1]https://financial-dictionary.thefreedictionary.com/rights

[2]https://economictimes.indiatimes.com/wealth/plan/do-you-know-your-financial-rights/articleshow/56699789.cms

[3][3]https://www.livemint.com/money/personal-finance/same-sex-couples-in-india-lack-basic-financial-rights-1561396839301.html