Insurance firms asked to share claim status with policyholders from 1 July 2019 by the insurance regulator

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The Insurance Regulatory and Development Authority of India (IRDAI) has asked insurance firms to inform policyholders about the status of their claims at all stages of processing, starting from 1 July 2019.  

Insurance
The Insurance Regulatory and Development Authority of India (IRDAI) has asked all life insurance, general insurance, and standalone health insurance companies to inform policyholders about the status of their claims from 1 July 2019.

In a recent circular that was issued, the insurance regulator said insurance companies will have to adopt a clear communication policy that protects the interests of their customers. The circular also added that it was necessary for insurers to make available a mechanism for policyholders to track the status of the claims that they raise.  

The IRDAI has also said that if a health insurance firm engages a third party administration for the purpose of rendering claim services to policyholders, the responsibility lies with the insurer to ensure that the claim status is communicated to the claimant at all stages of processing the claim. The regulator stated that transparent communication from the insurer’s end is necessary to ensure that benefits of the policies are provided to the beneficiaries on time.  

Furthermore, general insurance, life insurance, and standalone health insurance firms have been asked to send notifications about the issuance and servicing of insurance policies via SMS, letter, email, or other approved electronic forms.  

In addition, insurance firms have been asked to send messages to policyholders to enhance their awareness. This is apart from the regular cautionary messages that are sent by insurers advising customers to not fall prey to false offers or calls. 

All messages that sent to customers are required to be easy-to-comprehend language and should be in a local or regional language, besides Hindi and English.  

Source: The Times of India, Business Today 

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