The Insurance Regulatory and Development Authority of India (IRDAI), on September 05, 2024, issued Master Circular on Protection of Policyholders' Interests 2024.
This circular consolidates policyholder entitlements into a single document, focusing on enhancing claims settlement efficiency and improving service standards within the insurance sector. It is structured in two sections: the first provides a summary of essential information for policyholders and prospects at various stages of the insurance contract, and the second outlines the compliance requirements for insurers under relevant regulations.
Key features include the introduction of a Customer Information Sheet (CIS) for all insurance segments, the provision of proposal forms and CIS in regional languages upon request, and a mandatory 30-day free look period for Life and Health insurance policies. Additionally, insurers are required to offer a search tool on their website for verifying authorized distribution channels and to assess suitability in life insurance for savings and annuity products. The collection of nominee details, Digilocker integration, and the establishment of a Citizens’ Charter by insurers are also emphasized to ensure transparency and prompt service.
With clear guidelines on turnaround times for policy processing and claims, and tools for searching unclaimed amounts on Bima Bharosa, the IRDAI aims to safeguard policyholders' interests, promote trust, and boost efficiency in the insurance sector. This is the second of two Master Circulars, with the first issued on June 19, 2024.
The master circular is attached here.
