IRDAI has asked non-life insurance and standalone health insurance companies to do away with issuing of vouchers like discharge voucher or settlement intimation voucher while settling claims.
Typically, non-life insurance companies and standalone health insurance companies issue such vouchers to close the claim settlement requests. However, a few companies have been allegedly found to have settled claims by paying less coverage amount than what was insured. Further, these companies use this voucher as a means of estoppel against the policyholders when they approach any judicial forum with complains of inadequate settlement.
In a press release, IRDAI said, “The authority has been receiving complaints from aggrieved policyholders that the said instrument of discharge voucher is being used by the insurers in the judicial fora with the plea that the full and final discharge given by the policyholders extinguish their rights to contest the claim before the Courts.”
Further, the regulator has said, “However, it should be clearly understood that execution of such vouchers does not foreclose the rights of the policyholder to seek higher compensation before any judicial fora or any other forum established by law.”
The guideline has come into force with immediate effect.