IRDAI Strengthens measures to empower the Policyholders

The Insurance Regulatory and Development Authority of India (IRDAI) has released a Master Circular on Protection of Policyholders' Interests, which strengthens measures to empower policyholders. This circular consolidates policyholder entitlements into a single reference document, emphasizing seamless, faster, and hassle-free claims settlement experience. It provides essential information at various stages of an insurance contract, including for prospects, policyholders, and customers prior to sale, upon receiving policy documents, during the policy's term, and at the time of claim. The circular also mandates insurers to provide a Customer Information Sheet (CIS) detailing key policy features, benefits, and exclusions in regional language if requested by the prospect/policyholder. Other key features include the 30-day Free Look period for Life and Health insurance policies, no premium/proposal deposit requirement, verification tool on the insurer's website, and assessment of suitability for life insurance products except those purchased from National Pension System (NPS) or employer-offered superannuation funds. The circular also emphasizes the importance of nominee details, Digilocker integration, Citizens' Charter, turnaround times specified for policy processing and claim settlements, and search and access unclaimed amounts at Bima Bharosa website or the insurer's website. By implementing these measures, IRDAI continues to prioritize the interests of policyholders, advance transparency, and efficiency in the insurance sector.