Page 57 - The Insurance Times October 2024

Circular

IRDAI Corner

IRDAI Strengthens measures to em- 3. Regional Language Access: Proposal form and CIS must
be made available in regional language upon request
power the Policyholders of the prospect/policyholder.
Date: 05th September, 2024
4. Free Look Period: 30-day Free Look period applies to
The Insurance Regulatory and Development Authority of both Life and Health insurance policies, allowing poli-
India (IRDAI) as part of steps towards reinforcing empow- cyholders to review the policy terms and conditions.
erment of policyholders has issued Master Circular on Pro- 5. Premium /Proposal Deposit: No premium / proposal de-
tection of Policyholders¡¦ Interests under the IRDAI (Pro- posit is required to be paid to the life /health insurer
tection of Policyholders¡¦ Interests, Operations, and Allied along with the proposal form except in case of policies
Matters of Insurers) Regulations, 2024 replacing 30 circulars. where risk cover commences immediately on receipt of
This circular consolidates policyholder entitlements into a premium.
single reference document and emphasizes measures to- 6. Verification Tool: Insurers must offer a search tool on
wards providing seamless, faster and hassle-free claims their website enabling verification of authorised distri-
settlement experience to a policyholder and enhance ser- bution channels who can sell their insurance products.
vice standards, to foster a climate of trust and transparency 7. Assessment of suitability for life insurance is required
within the insurance sector.
to be done in case of savings related life insurance prod-
The Circular is divided into two sections. ucts and annuity products, except those annuities pur-
Section One: A policyholder/prospect who wishes to know chased from proceeds of NPS and from employer of-
a brief of important and relevant information at various fered superannuation fund.
stages of an insurance contract, may visit this section.
8. Nominee Details: Proposal forms to collect nominee de-
Section Two: specifically focusses on broad requirements tails including bank account details, to facilitate prompt
to be complied with by an insurer under the Regula- settlement of claims in the event of the policyholder¡¦s
tions. death.
Key Features of the Master Circular: 9. Digilocker Integration: Insurers to enable their IT sys-
1. Essential Information at various stages of insurance con- tems to interact with Digilocker allowing policyholders
tract: The Circular provides a summary of essential in- to use this service effectively.
formation at various stages of an insurance contract.
This includes guidance for prospects, policyholders and 10. Citizens¡¦ Charter: Each insurer must establish a Citi-
customers prior to sale, at the proposal stage, upon zens¡¦ Charter specifying service standards.
receiving policy documents, during the policy¡¦s term, 11. Turnaround Times specified: Turnaround times are speci-
and at the time of claim for all insurance segments (Life, fied for policy processing and claim settlements.
General, and Health). 12. Search and access unclaimed amounts: A claimant /
2. Customer Information Sheet (CIS): Insurers are man- policyholder can search for unclaimed amounts at Bima
dated to provide a CIS for all insurance segments, de- Bharosa website of IRDAI or from the website of the
tailing key policy features, benefits, and exclusions. concerned insurer.

The Insurance Times October 2024 51