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Insurance Insurers may settle your client’s claim in a piecemeal manner

Insurers may settle your client’s claim in a piecemeal manner

IRDAI has constituted a committee to see if it makes sense to allow insurers to settle personal accident and benefit based health insurance claims in installments.
Team Cafemutual Oct 16, 2018

IRDAI may allow insurance companies to settle claims arising out of personal accident cover and benefit based health insurance plans through installments instead of a lump sum payment.

In fact, the insurance regulator has constituted an eight-member committee to examine if it makes sense to allow insurers to settle such claims in a piecemeal manner.  Suresh Mathur, Executive Director, Health, IRDAI will be the chairman of this committee.

Currently, personal accident cover gives a lump sum amount to the policyholder if an insured meets with an accident and suffers major or minor ailment while benefit-based health plans pay a fixed amount upon the diagnosis of a critical illness. Simply put, these policies aim to ease the financial burden of the family by providing additional funds for medical expenses and treatment.

In a circular, IRDAI has said that the committee will examine

  • Need for allowing settlement of personal accident and benefit based health insurance claims in installments by general and health insurance companies.
  • If considered, operational procedures to be put in place to protect the interests of policyholders.
  • Accounting, actuarial and investment norms that need to be put in place before considering the concept.

The committee is expected to submit its recommendation within two months.

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