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Insurance Policy: The Insurance Regulatory and Development Authority of India (IRDAI) has simplified many rules related to insurance policies.
Cancellation of insurance policy: 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 IRDA, now general insurance companies will not be able to reject the claim due to lack of documents.
IRDA has issued a master circular clarifying the new rules related to insurance policies. IRDA said that if the policyholder cancels the policy, he does not need to give the reason for it. If the customer cancels the policy, the insurer will have to return the premium proportionately for the unlimited policy period.
However, it is necessary that the policy term is one year and no claim is made during this period. In case of policies with a term of more than one year, the refund premium should be made for an unlimited policy period. According to the circular, the insurance company can cancel the policy only if there is evidence of fraud. For this, the insurer can give a notice of at least 7 days.
As per the IRDAI circular, claims should not be rejected due to lack of documents. The required documents should be obtained while accepting this offer.
The customer may be asked to submit only those documents that are directly related to the settlement of the claim. This includes documents like driving license, permit, fitness, FIR, untraced report, post-mortem report, etc.
IRDAI'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. The basic features will be explained in it. In this, the scope of coverage, add-ons, basis of insurance amount, insurance amount, special terms and warranties, claim process and other information will be available at one place.