Page 11 - Insurance Times July 2024

Commenting on the latest IRDAI move, asked the existing insurers to provide documents. Required documents are
Jaspreet Bedi, Partner, Nangia & Co the required details to the acquiring to be called at the time of underwrit-
LLP, said: "The auditor refresh policy is insurance company within 72 hours. ing the proposal. The customer may be
to promote independence, impartiality, According to industry officials, it is asked to submit only those documents
and integrity in the audit process." It necessary and related to claim settle-
easier to acquire claims data for retail
enhances transparency and account- health; however, it is not easy to get ment (if cashless is not available)," the
ability by introducing new auditors ev- circular said.
the same for group health policies.
ery four years, preventing compla- Further, retail customers can cancel
cency, and maintaining rigorous finan- "Claims data will be easily available for the policy anytime by informing the
cial reporting standards, he said. retail health. However, that is not the insurer. The insurer can cancel the
case with group health policies. Hence, policy only on grounds of established
Insurers to seek clarity giving all the information in the speci- fraud. The insurer should refund a pro-
fied number of days is likely to be diffi-
from IRDAI cult. The insurance companies are portionate premium for the unexpired
policy period on cancellation, the cir-
The general and health insurance com- likely to speak with the regulator on
panies are likely to seek clarifications operationalising certain aspects of the cular said.
from the insurance regulator on the circular," said an insurance industry IRDAI has also provided strict timelines
operationalisation of certain aspects in executive. for the settlement of claims, including
the new master circular on health in- for the appointment of surveyors and
surance products. submission of their reports. It will be
Insurers can't reject claims
IRDAI repealed 55 circulars and issued on lack of documents the duty of the insurer to obtain timely
a new master circular on May 29, survey reports, IRDAI said. "Additional
2024. It was aimed at reinforcing the General insurance companies cannot options of 'pay as you drive'/ 'pay as you
empowerment of policyholders and reject claims for want of documents, go' to be given as a first choice to the
bolstering inclusive health insurance. the IRDAI said. customer in motor insurance," the cir-
The circular included several guide- The master circular is part of reforms cular said and added there should be
lines, including mandating strict in the general insurance business, es- no burden on the customer for dis-
timelines on final discharge pecially post-de-notification of all the posal of salvage. It further said that
authorisation and authorisation of tariffs and policy wordings, ushering in homeowners' "fire" policy should have
cashless claims within one hour of re- a new era of measures for simplified the option to choose add-on covers
ceiving the discharge note. and customer-centric insurance solu- such as flood, cyclone, earthquake,
tions. landslide, rockslide, terrorism or to opt-
In the case of porting policies from one out from comprehensive fire and allied
insurer to another, the regulator has "No claim shall be rejected for want of peril policy.

IRDAI's new commission norms to encourage Comparing non-life poli-
competitive premiums cies, claim process to get
The new norms on commission payments to insurance agents and other easier
intermediaries issued by the IRDAI are expected to result in more competi- IRDAI has brought in several reforms
tive premiums, said industry experts.
in non-life covers aimed at improving
"The recent circular is a significant step towards a new era of transparency transparency for policyholders.
and efficiency, benefiting both insurers and policyholders, a catalyst for
IRDAI has asked non-life companies to
positive change. The circular promotes fair commission structures, leading have a 'base product' in every line of
to potentially lower premiums," Sharad Mathur, Managing Director & Chief business. The base product will define
Executive Officer, Universal Sompo General Insurance Company said.
the minimum coverage addressing a
The norms mandate board-approved policies to ensure intermediaries act target segment of prospects/insurance
in their best interests. "Focus on ethical conduct and strong governance buyers, enabling comparison with
minimises conflicts and builds trust. The circular outlines regular reviews and other policies available in the market.
oversight are crucial, marking a turning point," Mathur added.
One of the key changes allows policy-
The Insurance Times July 2024 11