Irdai stated that it’s important for a policyholder to know the phrases and situations of the coverage that has been bought.
Irdai has revised the present buyer info sheet in order to convey primary details about the coverage bought in a fashion that’s simply understood.
Insurance firms must present primary options of a coverage like sum assured, what the coverage covers in addition to exclusions, and declare process, to policyholders in a prescribed format from January 1, for straightforward understanding of phrases and situations.
The Insurance Regulatory and Development Authority of India (Irdai) has revised the present buyer info sheet in order to convey primary details about the coverage bought in a fashion that’s simply understood.
“The revised customer information sheet (CIS) shall be implemented with effect from January 1, 2024,” the regulators stated in a round to all insurance coverage firms.
Irdai stated that it’s important for a policyholder to know the phrases and situations of the coverage that has been bought.
“Since a policy document may be fraught with legalese, it is imperative to have a document that explains in simple words, the basic features with regards to the policy and provides necessary information,” the round stated.
It additionally famous that a number of complaints are nonetheless emanating because of asymmetry of data between insurer and the coverage holder, Irdai stated, whereas offering rationale for introducing revised CIS.
As per the revised CIS, insurers must present ’title of insurance coverage product/coverage’; ‘policy number’, ’sort of insurance coverage product/coverage’; and ’sum insured’.
Policyholders may even learn about coverage protection (like hospital bills), exclusions (what the coverage doesn’t cowl), ready interval, monetary limits of protection, claims process, and particulars about grievances/complaints redressal mechanism.
The round additional stated that insurers, intermediaries, and brokers will ahead the CIC to all policyholders, and in addition acquire an acknowledgement concerning the identical. Also, CIC ought to be made obtainable in native language if the policyholder so needs.
(This story has not been edited by News18 employees and is revealed from a syndicated information company feed – PTI)
