Page 11 - The Insurance Times October 2024

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annuity payments must be settled on
IRDAI Introduces 30-Day Free-Look Period for Policies their respective due dates. Policy sur-
The IRDAI has issued a comprehensive circular aimed at improving policy- renders and partial withdrawals are
holder rights and service standards across the insurance industry. This new required to be processed within seven
directive replaces 30 previous circulars, consolidating policyholder entitle- days. Insurers are also obligated to
ments into one document. Among its many provisions, the circular man- send premium due notices and infor-
dates a 30-day free-look period for both life and health insurance policies, mation about policy benefits at least
giving customers sufficient time to review policy terms. one month prior to their due date.
Additionally, the circular requires insurers to provide a Customer Informa- Failure to adhere to these timelines will
tion Sheet (CIS) for all insurance segments, outlining policy features, ben- allow customers to escalate their com-
efits, and exclusions. Both the CIS and proposal forms must be available in plaints to the insurance ombudsman for
regional languages upon request. Insurers are also required to implement resolution.
online tools that allow customers to verify authorized distribution channels,
and nominee details must be collected to streamline claim settlement pro- Product Mis-Selling Drives
cesses. The IRDAI further requires insurers to integrate with Digilocker, Complaints in Life Insur-
ensuring digital access to policy documents and compliance with a Citizen's
Charter that outlines service standards. ance: IRDAI
Satyajit Tripathy, IRDAI's Member (Dis-
tribution), has called on insurance
Non-Life Insurers Expected IRDAI Tightens Deadlines companies to reduce policyholder
to Grow 17-18%, Life by for Death Claim Settle- grievances, focusing on product trans-
parency and customer experience. He
10%: IRDAI ments noted that in life insurance, many com-
IRDAI anticipates significant growth in In a move to enhance customer ser- plaints stem from the mis-selling of
both the life and non-life insurance vice, the IRDAI has reduced the products rather than claim settlement
sectors. Non-life insurance is projected timelines for settling death claims in issues.
to expand by 17-18%, driven primarily life insurance policies. Claims that do Tripathy pointed out that while non-life
by health insurance, while life insur- not require an investigation must now insurance grievances often relate to
ance is expected to grow by 10%. be settled within 15 days, down from claims, life insurance complaints prima-

Speaking at a CII summit, Satyajit the previous 30-day deadline. For early rily involve dissatisfaction with the prod-
Tripathy, IRDAI's Member (Distribution), death claims that necessitate a probe, ucts sold. Speaking at CII's Financing 3.0
highlighted that health insurance has the resolution period has been short- Summit, he emphasized that addressing
ened from 90 days to 45 days.
become the largest component of most these grievances is critical to improving
non-life insurers' portfolios, emphasizing Additionally, the IRDAI mandates that penetration and customer satisfaction
its growing importance in the industry. maturity claims, survival benefits, and within the insurance industry.

10 October 2024 The Insurance Times