‘No claim shall be rejected …’, says IRDAI | Key reforms in Master Plan on general insurance explained

financialexpress.com:

As part of reforms in the general insurance business especially post de-notification of all the tariffs and policy wordings, the Insurance Regulatory and Development Authority of India (IRDAI) has issued a master circular, which among major things has stated on claim rejections.

“No claim shall be rejected for want of documents. Required documents to be called at the time of underwriting the proposal,” the circular said, adding that the customer may be asked to submit only those documents necessary and related to claim settlement, if cashless is not available.

Ushering a new era of measures for simplified and customer-centric insurance solutions, IRDAI has issued a comprehensive Master Circular on General Insurance Business repealing thirteen circulars. The measures are aimed at giving consumers seamless experience and ease of operations for the insurers in a calibrated manner, the circular said.

Also read: Life insurers post record new business in May 2024: Premium collection, policy issuances swell by 31.2% and 11.7% respectively

Provision of easy-to-understand insurance products tailored to meet individual needs of the customers, providing them with ample choices and enhancing their insurance experience has now been enabled, it said, adding that 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 on General Insurance:

Customer Centric measures:

Calibration and governance measures:

In an environment which enables innovation, speed of delivery and flexibility of operations, it is imperative that the policyholders’ interest is safeguarded at