look news india
The Insurance Regulatory and Development Authority of India (IRDA) has halved the time limit for settlement of various insurance claims provided by insurance companies.
This decision has been taken by IRDA with the aim to make the responsibility and customer service of insurance companies more efficient and quality. Life insurance death claims that do not require investigation must be settled within a mandatory 15 days of the claim. Earlier this limit was 30 days. Also, earlier the time limit to settle the claim in case of death claim requiring investigation was 90 days, which has now been reduced to 45 days. The insurance regulator further said that in case of consumer complaints, insurance companies should register the complaint immediately and start action on the complaint within 14 days. If the issues are not resolved within this period then insurers have to inform the complainant within 14 days of the original date of complaint.
To protect the interests of policyholders, IRDA said in its master circular, maturity claims, survival benefits, annuity payments should be settled on their due dates. Insurance companies are also expected to send us premium information related to policy payments such as maturity or cervical benefits, at least one month before the due date. If companies fail to adhere to this deadline, consumers can approach the ombudsman, which has the power to direct insurance companies, the regulator said.
With regard to new business proposals, insurance companies are required to complete the entire process within seven days of processing such proposals as well as seek additional information if the situation arises. Also, a copy of the policy along with the proposal form must be mandatorily provided to the policyholder within 15 days. In case of health insurance, the regulator has again stipulated that cashless claims should be settled within three hours and non-cashless claims within 15 days. Policy loan related services and changes in basic policy terms also need to be completed within a time frame of seven days. Insurance companies should offer proposal forms and CIS in regional languages and provide a 30-day re-lock period for life and health insurance policies. Also, no premium is required with the proposal form unless immediate risk coverage is provided.