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Industry Specific - Insurance Central Insurance Regulatory Development Authority Insurance Act, 1938

Press release on Reforms in General Insurance Business

11-Jun-2024 | NA

The Insurance Regulatory Development Authority of India has issued Press release on Reforms in General Insurance Business informing issuance a comprehensive Master Circular on General Insurance Business repealing thirteen circulars.

The new guidelines aim to simplify and personalize insurance solutions, ensuring a seamless customer experience and operational ease for insurers in a de-tariffe regime.

Key highlights include:

Wider Product Choices and Customization: Customers can now choose from a broader range of products and add-ons tailored to cover assets, risks, and liabilities against various perils. This flexibility allows for greater customization based on individual needs.

Customer Information Sheet (CIS): A new CIS will provide clear and concise policy details, including coverage scope, exclusions, warranties, and claim settlement processes, ensuring transparency and better understanding for policyholders.

Document Submission Simplification: Claims cannot be rejected due to document deficiencies. Necessary documents will be requested during underwriting, and only essential documents will be required for claim settlement if cashless options are unavailable.

Policy Cancellation: Retail customers can cancel their policies anytime by informing the insurer. Insurers can cancel policies only on grounds of established fraud, with proportionate premiums refunded for the unexpired period

Strict Timelines: Insurers must adhere to strict timelines for appointing surveyors and obtaining their reports. Ensuring timely surveys reports is the insurer?s responsibility.

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