IRDAI tells insurers to make insurance policies easily understandable via CIS. Details here
IRDAI (Insurance Regulatory and Development Authority of India) has instructed insurers — via a circular on Oct 30 — to release a revised customer information sheet (CIS). This is aimed to ensure that the customers understand the basic features with regards to policy in simple words. The customer information sheet is meant to be provided to all policyholders by insurers including both life insurance providers and health insuranceproviders, ordered the regulator.
The current customer information sheet seeks to convey basic information about the policy purchased in a manner that is easily comprehensible. The decision with regards to revised customer information sheet (CIS) was taken after a number of complaints were received regarding asymmetry of information between insurer and the policyholder. The insurer will also provide a web link, reads the circular, where the product-related documents including the customer information sheet are available on the website.
The CIS will be made available in local language if the policyholder so desires. It is incumbent upon insurers to fill in all details in the sheet. The text in the sheet will have a minimum font size of 12 (ariel) or above.
Moreover, the insurer will be supposed to take confirmation of the policyholder regarding receiving of the customer information sheet. These are the details that will be mandatorily covered in the Customer Information Sheet: I. Name of insurance policy II.
Policy number III. Type of policy: Indemnity, benefits and both. IV.
Sum insured: To include individual sum insured and floater sum insured. V. Policy coverage: To include what all will be covered.
VI. Exclusions: Insurer has to ensure that all the applicable exclusions are listed here. VII.
Read more on livemint.com
