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In order to reduce instances of claim rejection, IRDAI has asked general insurance companies not to reject in absence of documents.
Instead, the insurance regulator has asked insurers to obtain all the necessary documents at the time of issuing the policy.
This means, insurers cannot harass policyholders by asking for documents at the time of claim settlement. However, only if cashless facility is not available, insurers can demand a few claim related documents.
Among other key changes to the general insurance policies are:
- Retail policies can be cancelled anytime during the policy year simply by informing the insurers. Insurers will have to refund the premium amount on pro-rata basis
- Insurers can also cancel the policy but only on grounds of fraud
- Claims cannot be delayed due of delay in surveyor report. Insurers will have to obtain report from surveyor within 24 hours and adhere to strict claim settlement guidelines
- In motor insurance, insurers will have to make ‘pay as you drive, pay as you go or pay as you use’ as default option. This policies have lower premium as your clients pay premium based on kilometres driven
- All motor policies should give towing or road side assistance service
- Homeowners will have an option to get claim against various acts of god like earthquake, cyclone and so on
- Policy wordings should be in simple language and be easy to understand
- Insurers will have to ensure end to end digital solution like onboarding, policy servicing, claim settlement and grievance redressal
- Insurers should make clear mention of exclusions
- Insurers have to provide customer information sheet (CIS) with every policy highlighting key features of the policy in brief
- CIS should be issued in local language. Also, insurers have to obtain acknowledgement that the policyholder has received CIS
