Page 60 - Insurance Times August New 2023

can be achieved by making their remuneration predomi- Companies are advised to mobilise all resources to en-
nantly based on the effective achievement of the ob- sure immediate service response including by
jectives appropriate to such control functions, and not outsourced functions such as investigators, surveyors
linked to the performance of any business units which and loss adjustors as under:
are subject to their control or oversight, etc. a. Nominate a Senior Executive in each affected State
/ UT to act as the Nodal Claims Officer overseeing
C. Objectives
the claims response. The Nodal Officer appointment
The primary objective of issuing these guidelines are as un-
should be communicated to the Chief Secretary /
der-
Officer concerned of the State immediately.
i. To ensure effective governance of compensation
b. Districts reporting large numbers of claims may be
ii. To ensure alignment of compensation with prudent risk
overseen by a designated District Claims Service
taking
Head.
iii. To ensure effective supervisory oversight and stake-
holder engagement c. The contact particulars of the State / District heads
should be published on the Insurer website and
iv. To ensure safety of interest of policyholders and other
necessary publicity may be also given in the press.
stakeholders
d. All Insurers should also activate, publish 24x7
In this background, the Authority, in exercise of its powers
helplines to respond / assist Claimants and launch
under section 14 of the IRDA Act, 1999 issues the following
extensive awareness campaign duly highlighting
guidelines:
the measures taken.
i. Insurance Regulatory and Development Authority of
India (Remuneration of Non-Executive Directors of In- e. Special Claims Desks at District level with adequate
surers) Guidelines, 2023 (Annexure-A) delegated Claims Settlement Teams are recom-
mended to be set up in affected areas to facilitate
ii. Insurance Regulatory and Development Authority of
claims speedy processing and settlements including
India (Remuneration of Key Managerial Persons of In-
release of on-account interim payments to assist
surers) Guidelines, 2023 (Annexure-B)
early reinstatement of property / businesses.
D. Further powers of the Authority
f. It needs to be ensured that all claims are surveyed
i. Power of the Chairperson to issue clarifications: In or-
immediately and claim payments / on account pay-
der to remove any difficulties in respect of the applica-
ments are disbursed at the earliest and in any case
tion or interpretation of any of the provisions of these
not exceeding the stipulated timeline.
Guidelines, the Chairperson of the Authority may issue
appropriate clarifications from time to time. g. Adequate number of surveyor may be engaged im-
mediately as required and if needed, consider en-
These guidelines are not applicable to Foreign Reinsurance
gaging surveyor from neighbouring areas as well.
Branches (FRBs) operating in India. These Guidelines shall
replace and supersede the guidelines issued vide Ref: IRDA/ h. The insurer shall encourage the policyholder to use
F&A/GDIASTD/15510812016 on 5th August, 2016 and shall electronic communication wherever possible for
come into effect from FY 2023-24. correspondence while initiating the claim and fil-
ing all the relevant documents. Efforts shall be
made to ensure that digital processes are resorted
All CEOs / CMDs of all General Insurance
to the extent possible for assessment of claims.
Companies, and Stand-Alone Health Insur-
i. Insurers are also expected to review and stream-
ance Companies
line processing of claims by ensuring only such docu-
16.07.2023 mentation necessary to substantiate claim quan-
tum, to ensure expeditious final settlement.

3. All General Insurers (including Standalone Health Insur-
1. Floods (July 2023) in various States of North India are
ers) are advised to submit information related to the
expected to cause widespread loss to property (homes
flood claims to the IRDAI in the format attached on a
and businesses) and infrastructure.
weekly basis at nl-catastrophe@irdai.gov.in for a
2. General Insurers and Standalone Health Insurance month.
52 August 2023 The Insurance Times