look news india
Important reforms are going to be implemented in the field of non-life policies. Which will prove to be very beneficial for the policyholders. The biggest reform is that from now on policyholders will be able to cancel their policy without giving any reason and get a refund for the remaining period.
Insurance companies not complying with the ombudsman rule will be fined Rs 5,000 per day with strict timelines for settling claims. As per the instructions of the Insurance Regulatory and Development Authority of India (IRDAI), it is mandatory for insurance companies to offer Aadhaar products across all insurance categories. From now on, insurance companies will not be able to reject claims due to lack of documents.
At the time of claim settlement (only in cases where cashless is not available) Required documents like Claim Form, Driving License, Permit, Fitness Certificate, FIR, Untraced Report, Fire Brigade Report, Postmortem Report, Account Book, Stock Register, Salary Slip and Repair Bill can be requested at the time of claim settlement.
Also, the regulator has made it mandatory for companies to implement the policy for a period of not less than one year and review it from time to time to extend the period based on certain criteria. On allotment, the surveyor has to submit his report to the insurance company within 15 days.
Reforms in the non-life insurance sector
Base product: Defines minimum coverage in each line of business for comparison with other policies, transparency
Pay as you go: This allows insurance companies to create products where charges are determined based on the extent of risk.
Flexible Policy: Allowing customers to choose to extend the policy term from less than one year to more than one year annually.
claim settlement: Aim for settlement within seven days of receipt of the survey report.
