To streamline and simplify the insurance landscape, the Insurance Regulatory and Development Authority of India (IRDAI) has implemented substantial reforms across motor, health, and home insurance segments. These reforms are aimed at enhancing transparency, accessibility, and efficiency within the insurance sector, ultimately benefiting consumers and insurers alike.
The latest series of reforms has implemented the Customer Information Sheet (CIS) to offer precise and easily understandable policy information, covering aspects such as the extent of coverage, exclusions, warranties, and procedures for claim settlements.
Under the updated regulations, consumers now have the flexibility to select insurance plans for periods ranging from six months to over a year, offering a wider range of options to suit their specific requirements and preferences.
Insurance claims will not be rejected due to missing documents. Instead, customers will only be required to submit relevant documents directly related to the claim settlement process, by the new guidelines.
Retail clients have the option to terminate their policy at any time by notifying the insurance provider. The insurer can only cancel the policy in cases of fraud. Upon cancellation, customers will receive a refund based on the remaining period of the policy. Insurers must prioritize offering pay-as-you-drive and pay-as-you-go options to customers in motor insurance policies.
Homeowners who have a “fire” policy will be able to select additional coverage options like flood, cyclone, earthquake, landslide, rockslide, terrorism, or choose not to include them in the comprehensive fire and allied peril policy.
The regulatory body, in a statement titled “Reforms in General Insurance Business,” mentioned that these changes will streamline the insurance industry, leading to more customer-focused insurance offerings. It further stated that these reforms will support insurers in their day-to-day activities.
