IRDAI has issued new instructions for insurance companies. Under this, all the detailed information about the insurance policy will have to be given in a prescribed format.
Insurance regulator IRDAI has issued new instructions for insurance companies. Under these, insurance companies have to provide information to the policyholder in a prescribed format about the basic aspects of a policy such as the sum insured and the expenses covered under the policy along with the claim. These new rules made by the Insurance Regulatory and Development Authority will come into effect from January 1, 2024.
According to news agency PTI, IRDAI has modified the existing customer information sheet to easily explain the basics of the policy purchased to the insured. The insurance regulator said in a circular sent to all insurance companies in this regard that the revised Customer Information Sheet (CIS) will come into effect from January 1, 2024.
Terms and conditions should be in easy language.
The authority said that it is important for the policyholder to understand the terms and conditions of the policy purchased. According to this circular, “A policy document can be full of legal complexities, hence it should be a document that explains the basic points regarding the policy in simple words and is full of necessary information.”
The regulator was receiving a lot of complaints.
According to the circular, many complaints are still being received due to the disparity between the insurance company and the policyholder on policy related points. Keeping this in mind, revised CIS has been issued. In this, insurers will have to tell the name of the insurance product/policy, policy number, type of insurance product/policy and sum insured.
Companies will also have to provide policy information in the local language.
Apart from this, policyholders will also be informed about the expenses included in the policy, things outside its scope, waiting period, financial limit of coverage, claim process and grievance redressal mechanism. . According to the circular, the insurance company, intermediary and agent will have to send the details of the revised CIC to all the policyholders. If the policyholder wishes, the CIC should be made available in the local language.
