General insurance companies cannot reject the claim of the policyholder just because his documents are not complete. Insurance regulator IRDAI has made several major changes for retail policyholders in its recent circular, which have come into effect with immediate effect.
The policy can be canceled anytime
In the new circular, the regulator has said that an insured can cancel his policy whenever he wants during the period of his policy, the insured will also get the money for the remaining period after the cancellation of the policy as a refund.
If the policyholder cancels the policy, then he does not need to give any reason for it. The insurance company can cancel the policy of a policyholder only when it proves that any cheating or fraud has been done by the insured, for this also he will have to give a notice of 7 days. The excuse of incomplete documents will not work
If a policyholder's documents are lost, and he is unable to provide complete documents, even then the insurance company cannot reject his claim. The customer will have to provide only those documents that will be necessary for claim settlement, such as driving license, permit, fitness, FIR, un-trust report, post-mortem report, and stock register.
Technology solutions will have to be provided
According to the circular issued by IRDAI, insurance companies will have to provide facilities to cover the basis of the asset, risk, property, exposure, and business line of the retail policyholder. This facility will also have to be provided for individuals, farmers, MSMEs, and other retail segments. All this information will be given in easy language. Insurance companies will have to give freedom to make changes in the product as per the needs of the shareholder. Insurers will have to prepare innovative products for the convenience of customers.
Insurance companies will have to provide end-to-end technology solutions for policyholders. The shareholder should also have the facility of policy servicing, policy renewal, claim settlement, and lodging his complaint.
A CIS sheet has to be provided
IRDAI said that every retail customer should be given a customer information sheet (CIS) with every policy, this sheet should explain the basic features of the policy in one place. It should provide information about the scope of coverage, add-ons, the basis of insurance, the sum insured, special conditions and warranties, endorsements, and the claim process.
If a tariff is given, the insurance company cannot return or reject the customer's offer.
All insurance companies will have a retail product, which will be used as a base product. In this base product, minimum coverage in the business line will be necessary.
PC Social media
