The Insurance Regulatory and Development Authority of India (IRDAI) has simplified many rules related to insurance policies.
Insurance Policies Rules Change: The Insurance Regulatory and Development Authority of India (IRDAI) has simplified many rules related to insurance policies. Under this, policyholders can cancel their insurance policy with certain conditions. Along with this, policyholders will also be able to get a refund for the remaining period of insurance. At the same time, under the new rules of IRDAI, general insurance companies will not be able to reject claims in the absence of documents.
Refund on cancellation of policy
IRDA has issued a master circular and told about the new rules related to insurance policy. IRDA said- If the policyholder cancels the policy, he does not need to give the reason for it. If the customer cancels the policy, then the insurer should return the proportionate premium for the policy period which has not expired. However, it is necessary for this that the policy period is up to one year and no claim has been made during this period. In respect of policies with a period of more than one year, the premium should be refunded for the policy period which has not expired. According to the circular, the insurer can cancel the policy only on the basis of fraud being proven. For this, the insurer will be able to give a minimum notice of 7 days.
Claim should not be rejected in the absence of documents
According to the circular of IRDA, the claim should not be rejected in the absence of documents. Necessary documents should be asked for at the time of acceptance of this proposal. The customer can be asked to submit only those documents which are directly related to the claim settlement. Under this, documents like driving license, permit, fitness, FIR, untraced report, postmortem report etc. come.
Customers will be able to understand in easy language
IRDA’s circular states that every customer should be given a Customer Information Sheet (CIS). Under this, customers will be able to know about the policy in simple words. Basic features will be explained in it. In this, information like scope of coverage, add-ons, basis of insurance amount, insurance amount, special conditions and warranty, claim process and other information will be available at one place
