IRDAI asks insurers to share status of claims with policyholders from Jul 1

All insurance companies will be required to send communication from issuance to servicing of policies through post, e-mail, SMS, etc.

IRDAI asks insurers to share status of claims with policyholders from Jul 1

The Insurance Regulatory and Development Authority of India (IRDAI), through a circular, has asked insurance providers to espouse clear and transparent modes of communication at various stages of claim settlement of a policyholder.

The IRDAI emphasised that transparent communication plays a pivotal role in servicing insurance needs, and in ensuring the benefits of the insurance policy reach the beneficiaries in a timely manner.

Related: How to choose the right insurance company? 

What to expect from your insurance companies?

Starting July 1, all insurance companies – life, health and general – will be required to send communication from issuance to servicing of policies through post, e-mail, SMS or any other electronic form approved by the IRDAI.

Insurance companies will be needed to set up a tracking mechanism that will allow policyholders to remain updated on the status of their claim every step of the way. Each claim will be assigned a unique reference number that will help track communication, requirement and processing of documentation, scrutiny to approval and disbursal of benefits.

The insurance watchdog especially underlined that in case of health insurance, where Third Party Administrators (TPAs) have been involved for rendering health services, the insurance provider will take the lead from the issuance of ID cards and all related communication from end-to-end to ensure the claimant is updated on the status at every stage.

Related: Difference between insurance agent and insurance broker 

What are communication directives?

All communication has to be delivered in easy to read and understand, simple language. Wherever possible insurers should communicate in the policyholder’s regional/ local language from place of residence other than English and Hindi. 

Additionally, insurance providers have been directed to collect e-mail IDs and mobile numbers of policyholders at the point of sale and for all policies going forward as a measure to improve service delivery.

The insurance companies will also have to send brief advisory messages in addition to the standard cautionary messages about the perils of sharing confidential personal information and not falling prey to bogus communication and offers from miscreants/ impersonators. Know all about your rights and duties while buying insurance.

Related Article