The Insurance Regulatory and Development Authority of India (IRDAI) has come up with a new set of guidelines regarding insurance claims for insurers operating in India. Under these new guidelines, policyholders are now allowed to increase or decrease their sum assured amount during the course of the policy. Moreover, policyholders can also change their premium payment terms from yearly payments to half-yearly payments, quarterly payments, etc.
Many industry insiders claimed that these changes by the regulator will bring down the discontinuance of health insurance covers. Since the new guidelines provide a lot more flexibility to policyholders, they are more likely to keep their policies for a longer duration. Experts believe that customers stand to benefit a lot from these changes made to insurance covers.
IRDAI issued a circular to all insurers regarding the change in guidelines. The new guidelines outlined by the insurance regulator will come into effect from 1 July 2019 onwards. In addition to these new rules for health insurance policies, the regulator has also come up with many other guidelines to improve the transparency of insurance claims.
The circular issued by the insurance regulator spoke about the importance of having a tracking mechanism for insurance claims to help policyholders know the status of their claims. Insurers are now directed to keep policyholders updated about their claims while they are being processed.
The new rules directed insurers to provide proper communication about various aspects of a policy including proposal registration, policy acceptance, policy rejection, bonus accrual, value of policies, etc. When it comes to health insurance, IRDAI directed all insurers or third-party administrators (TPAs) to communicate with the policyholders regarding the policy.
IRDAI has also asked insurance companies to follow a tracking system where a unique reference number is generated immediately after a claim is made. Policyholders can use this number at various stages to keep tracker of their insurance claims.
Source: Zee Business