IRDAI — The Insurance Regulatory and Development Authority of India (IRDAI) has issued a new master circular aimed at simplifying various insurance processes and improving the overall customer experience. This comprehensive circular, which repeals 13 older circulars, introduces several key changes to streamline claims, enhance transparency, and offer greater customization in insurance products.
IRDAI Issues New Circular to Simplify General Insurance Processes and Enhance Customer Experience
One of the most notable changes is the directive that no insurance claim shall be rejected due to insufficient documentation. The IRDAI mandates that required documents be requested at the time of underwriting the proposal, and customers will only need to submit documents necessary for claim settlement if cashless options are not available. Narendra Bharindwal, vice-president of the Insurance Brokers’ Association of India (IBAI), stated, “Ensuring that no claim is rejected due to insufficient documentation shifts the burden of proof onto insurers during the underwriting process.
This change simplifies the claims process for policyholders, reducing administrative hurdles and expediting claim settlements, which enhances the overall customer experience.”
Additionally, the introduction of a Customer Information Sheet (CIS) aims to provide clear and concise policy details, including the scope of coverage, exclusions, warranties, and claim settlement processes. This initiative is expected to improve transparency and help customers better understand their policies.
The IRDAI is also expanding customer choices with a wider array of products and add-ons, allowing for greater customization to meet individual needs. New options for motor insurance include “pay as you drive” and “pay as you go” models. Homeowners can now select add-on covers for specific risks such as floods, cyclones, earthquakes, landslides, rockslides, and terrorism, or opt out of comprehensive fire and allied peril policies.
Policy cancellations have been made more customer-friendly as well. Retail customers can now cancel their policies at any time by notifying their insurer. Insurers can only cancel policies on grounds of established fraud. Upon cancellation, the insurer must refund the proportionate premium for the unexpired policy period.
These changes reflect IRDAI’s commitment to making insurance processes more customer-centric, transparent, and flexible. The new regulations are expected to significantly improve the insurance experience for policyholders across India.
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