The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a 12-member committee for simplification of insurance policy wordings.
Consisting of Insurance Advisory Committee members, General and Life Insurance Councils in addition to IBAI representatives, Principal Officer, State Bank of India (company agent) and some of its personal senior officers, the committee has been tasked to “examine existing insurance policy wordings and suggest simple, plain wordings that are legally correct and enforceable.”
The phrases of reference require the committee to give you easy policy wordings that clearly specify obligations and tasks of all events to the contract. It can also be required to counsel specs resembling typefaces for written materials and presentation, for each print as properly digital data which are simply readable and understandable, IRDAI stated.
Setting a 8-10 week timeframe for submission of the suggestions, IRDAI permitted the committee to rope in exterior specialists, if wanted. The committee comes within the backdrop of difficulties policyholders encounter in comprehending the phrases and situations in insurance policy contract due to “complexity in language used. This leads to the policyholder [getting] confused… to make informed decisions while purchasing an insurance policy,” the insurance regulator, which is pursuing an insurance for all by 2047 aim, stated.
