No claim shall be rejected for want of documents: IRDAI to general insurers

Insurance Regulatory and Development Authority of India (IRDAI) has issued a comprehensive Master Circular on General Insurance Business. In this master circular, IRDAI has directed general insurance companies that no claim shall be rejected for want of documents. Required documents to be called at the time of underwriting the proposal. The customer may be asked to submit only those documents necessary and related to claim settlement (if cashless is not available). Further, retail customer can cancel the policy anytime by informing the insurer. The insurer can cancel the policy only on grounds of established fraud. The insurer should refund a proportionate premium for the unexpired policy period on cancellation. 

IRDAI has also provided strict timelines for the settlement of claims, including for the appointment of surveyors and submission of their reports. It will be the duty of the insurer to obtain timely survey reports. Additional options of ‘pay as you drive’/ ‘pay as you go’ to be given as a first choice to the customer in motor insurance. Insurers will also have to give a Customer Information Sheet (CIS) to provide clear and concise policy details, including scope of coverage, exclusions, warranties, and claim settlement processes.

The master circular is part of reforms in the general insurance business, especially post-de-notification of all the tariffs and policy wordings, ushering in a new era of measures for simplified and customer-centric insurance solutions. The comprehensive master circular on general insurance business also repeals 13 circulars. The provision of easy-to-understand insurance products tailored to meet the individual needs of the customers, providing them with ample choices and enhancing their insurance experience has now been enabled.