General insurance companies cannot reject claims for lack of documents (Irdai)

The main circular comes within the framework of reforms in the general insurance sector, especially after the denotification of all prices and policy wordings, paving the way for a new era of measures for simplified insurance solutions and customer-centric.

The general framework circular on damage insurance matters also repeals 13 circulars.

Irdai said providing easy-to-understand insurance products, tailored to meet customers’ individual needs, giving them a wide choice and improving their insurance experience, was now possible.

“No claim will be rejected for lack of documents. The required documents must be requested at the time of subscribing to the proposal. The customer may be asked to submit only the documents necessary and related to the settlement of the claim (if cashless payment is not required). ‘is not available)” says the circular.

Additionally, retail customers can cancel the policy at any time by notifying the insurer. The insurer can only terminate the contract due to proven fraud.

The insurer must refund a proportionate premium for the unexpired insurance period in case of cancellation, the circular said.

Irdai has also set strict deadlines for settlement of claims, including appointment of surveyors and submission of their reports.

It will be the duty of the insurer to obtain timely investigation reports, Irdai said.

“Additional options of ‘pay as you go’ https://www.deccanherald.com/ ‘pay as you go’ to be given as the first choice to the customer in motor insurance,” the circular said and adds that there should be no options. The customer is responsible for disposing of the recovered items.

He added that fire insurance policy owners should have the option to choose additional coverages such as floods, cyclones, earthquakes, landslides, landslides, terrorism or remove from the comprehensive fire and related risks policy.

Insurers will also need to provide a Customer Information Sheet (CIS) to provide clear and concise details of the policy, including the extent of cover, exclusions, guarantees and claims settlement processes.