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General insurance customers to get wider choice of products; claim settlement simplified

As part of reforms in the general insurance business, the Insurance Regulatory and Development Authority of India (IRDAI) has issued a comprehensive Master Circular, repealing thirteen circulars. The shift from rule-based to principle-based regulatory framework facilitates ease of doing business and encourages innovation, enabling reduction in the response time for emerging market needs.

Key highlights of the Master Circular:

  • For ready reference, retail customers are provided with important and relevant information at one place.
  • Availability of wider choices of products/add-ons covering his/her assets, risks, properties, and liabilities against various perils, exposures and lines of business
  • Possibility of customization of products and flexibility to choose products as per their needs.
  • Introduction of a Customer Information Sheet (CIS) to provide clear and concise policy details including the scope of coverage, exclusions, warranties, and claim settlement processes
  • No claim shall be rejected for want of documents. Required documents to be called at the time of underwriting the proposal.
  • The customer may be asked to submit only those documents necessary and related to claim settlement (if cashless is not available).
  • Retail customer can cancel the policy anytime by informing the insurer.
  • Insurer can cancel the policy only on grounds of established fraud. The insurer shall refund proportionate premium for the unexpired policy period on cancellation.
  • Strict timelines for settlement of claims including TATs for appointment of surveyors and submission of their reports. It will be the duty of the insurer to obtain timely survey reports.
  • No contribution clause to be applied in case of multiple policies. · Additional options of “pay as you drive”/ “pay as you go” to be given as first choice to the customer in motor insurance.

For details, visit:

PR Newswire

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