look news india
Changes in the rules of insurance policies: 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 informed about the new rules related to insurance policies. IRDA said – If the policyholder cancels the policy, he does not need to give the reason for it. If the customer cancels the policy, 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 should be 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 returned for the policy period which has not expired. According to the circular, the insurer can cancel the policy only on the basis of proven fraud. For this, the insurer will be able to give a minimum notice of 7 days.
Claim should not be rejected due to lack of documents
According to the circular of IRDA, the claim should not be rejected due to lack of documents. Necessary documents should be sought at the time of accepting the offer. The customer can be asked to submit only those documents which are directly related to the settlement of the claim. This includes documents like driving license, permit, fitness, FIR, untraced report, postmortem report etc.
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 this. In this, the 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.
