IRDA has proposed that insurance companies should formulate Insurance Awareness Policy (InAP) to create awareness about insurance among masses. However, the regulator has not clarified the manner in which such programs should be carried out.
In a draft circular, IRDA has instructed insurance companies to formulate an ‘InAP’ to educate customers about insurance products, benefits, rights and responsibilities of policyholders, etc.
Further, to improve the quality of services and communication between policyholders and insurers, the regulator has proposed to set up a citizen’s charter. IRDA defines Citizen’s Charter as, “Citizen’s charter of an insurer is a document, which represents the commitment of the insurer towards its clients in respects of standard of services, information, choice and consultation, non-discrimination and accessibility, grievance redress, courtesy and value for money. This also includes expectations of the insurer from the citizen for fulfilling the commitment of the insurer. It enshrines the trust between the insurance service provider and the end users with the primary objective of empowering clients in relation to insurance service delivery.”
Also, IRDA has directed insurance companies to enforce basic rights to consumers such as right to professional diligence, right to protection against unfair contract terms, right to protection against unfair market conduct, right to protection of personal information, right to requirement of fair disclosure etc.
Meanwhile, IRDA has proposed to set up a grievance redressal cell to improve customer service. The regulator has asked insurance companies to appoint Chief Executive Officer or Chief Compliance Officer as Grievance Redressal Officer (GRO).
IRDA has proposed that insurance companies have to appoint an official at every regional, divisional and branch office. Insurers will be required to put in place a system to receive, register and dispose of grievance in such offices or through voice calls and emails.
The insurers have been instructed to issue acknowledgement of the complaint in which they will have to mention the expected turnaround time. Any delay will be subject to penalty.
To improve transparency, IRDA has said that insurance companies should publish their grievance redressal procedure on their respective websites.
IRDA has sought feedback from stakeholders before January 19 in this regard.