FINANCEOUTLOOKINDIAOCTOBER, 20248THE INSURANCE REGULATOR ISSUED A CIRCULAR TO PROTECT THE INTERESTS OF POLICYHOLDERSBy Finance Outlook India TeamREPORTThe Insurance Regulatory and Development Authority of India (IRDAI) has released a master circular to strengthen the rights and protections of health and life insurance policyholders. The circular, which was released on September 5, includes regulations on claim settlements, customer information sheets, and how insurers treat policyholders in general.Key topics from the circular that you should know as a policyholder:Customized benefit illustrations: At the point of sale, insurers must provide a bespoke benefit illustration outlining specific benefits based on the customer's profile. This ensures that policyholders fully grasp their coverage options.Streamlined proposal processing: Insurers must process proposal forms expeditiously, intending to make a decision within seven days of receiving all relevant information. This includes quickly communicating acceptance or rejection, as well as the reasons for non-acceptance.Electronic insurance issuance: Policies will be issued electronically upon the approval of a proposal and receipt of premium, with the option of physical documentation if required.Customer information sheet (CIS): A statement provided by the insurer along with the policy document that summarizes critical information and basic elements of the policy issued in one place. For life insurance plans, the CIS must be in the format required in the Insurance Act's 'Schedule D'.Key information in a CISForm of insurance: Indicates whether the policy is term life, whole life, or any other form.The sum assured indicates the amount payable to the beneficiary in the event of a claim.Benefits: Provides a full summary of the policy's coverage and advantages.Exclusions: The policy does not cover the following conditions or scenarios.Important factors: This section includes information on the free look time, renewal dates, policy revival and loan alternatives, and other relevant factors.Claims Procedure: Describes the actions necessary to file a claim.Policy Servicing: Provides information about customer support and help services.Grievance redressal: Outlines the procedure for filing complaints and offers contact information for the Insurance Ombudsman.
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