Page 7 - Insurance Times December 2019

IRDAI

News

IRDAI directs Reliance IRDAI proposes to increase self-assessment limits of
Health Insurance to stop damage
In a bid to make motor insurance claim settlement easier, IRDAI has recently
new policy sell proposed to increase the limits of self-assessment
IRDAI has recently directed Reliance of damage. It must be noted that the current limit
Health for self-declaration by customers for motor acci-
Insur - dent claim is Rs 50,000 and for fire, marine, home
ance and other insurance claims it is Rs 1 lakh.
Company Presently, any claim above that limit has to be as-
(RHCIL) sessed by an insurance surveyor. It is to be mentioned that the exposure draft
to put a is prepared for carrying out amendment of the existing Insurance Regulatory
cap on and Development Authority of India (Insurance Surveyors and Loss Assessors)
the sale of new policies and trans- Regulations, 2015.
fer the entire policyholders’ liabili-
In accordance with the new proposal, customers can self-declare in case of
ties to the authority. motor accidents up to Rs 75,000, and for non-motor claims up to Rs 1.5 lakh.
In a press release, the IRDAI had an- IRDAI has released its draft exposure. This relaxation comes at a time when
nounced from now on, the insurer insurance companies are using app-based AI to assess insurance claims.
can only serve its old policies. Reli- IRDAI said, “The enhancement of limits for small claims will help to utilise the
ance Health Insurance is presently manpower available within the insurance company for survey work up to the
facing major liquidity issues. As per loss limits so that such small claims are settled expeditiously."
IRDAI, Reliance Health Insurance has
IRDAI said in its proposal that the rationale for amendment is "Claim payment
failed to maintain the required sol- is the moment of truth and the insurance surveyor and loss assessor plays a
vency margin since June, 2019. pivotal role in assessing the losses in case of general insurance claims. After a
"After it came to the knowledge of detailed analysis of various recommendations made by the above-mentioned
IRDAI in the latter part of August, Committees as well as the Working Group, in an attempt to facilitate wider
2019, a direction was issued to participation of younger generation to become surveyors, to meet the varied
RHICL to restore the required level professional requirements of general insurance market and to rationalise the
licensing requirements, it is felt essential to streamline the regulatory frame-
of solvency margin within a period
of one month. However, despite re- work through amendment."
peated follow-up, this has not been
carried out so far. Thereafter, the
insurer was issued a show-cause
notice and given another opportu-
nity to present its case," stated
IRDAI in its release.

The Insurance Times, December 2019 7