Motor Insurance Claim: Indian insurance regulator IRDAI has issued a master circular to simplify the process of motor insurance claim settlement.
Motor Insurance Claim Settlement: The Insurance Regulatory and Development Authority of India (IRDAI) has given a big relief to the customers taking motor insurance. On Tuesday, IRDAI has issued a master circular to the general life insurance companies and given special instructions. After the release of this circular, now the companies will not be able to reject the claim of the customers even if there is a lack of documents.
Through this circular, the insurance company has tried to make the process of claim settlement easier and more customer-centric. Earlier, the insurance regulator had issued a similar master circular for health insurance. The Insurance Regulator and Development Authority of India (IRDAI) has also issued a master circular to general insurance companies to provide better service to the customers.
13 old circulars were cancelled
A total of 13 old circulars have been repealed by the master circular issued by IRDAI. Giving information on this matter, IRDAI has said that after the release of this circular, insurance companies will now be able to understand the individual needs of the customers. This will enable companies to launch insurance products according to the needs of the customers and customers will get more options than before and this will improve their insurance experience.
These changes have made motor insurance claims easier
In the circular issued by IRDAI, it has been made clear that now no motor insurance claim can be rejected due to lack of documents. Along with this, insurance companies have also been instructed to demand only the necessary documents.
CIS will be given to the customers
Along with this, the insurance regulator has also directed the companies providing motor insurance to issue a Customer Information Letter (CIS) to the customer on the lines of health insurance. Through this letter, customers will get an opportunity to know the details of the policy in simple words. In this document, insurance companies will provide information to the customers about the scope of insurance coverage as well as add-ons, insurance amount, terms and warranty, claim process etc.
Canceling the policy has also become cheaper and easier
IRDAI has made the process of cancellation of policy as well as refund easier for the customers. Now the policyholder will not have to tell the reason for cancellation of insurance to the policyholder. For this, the policy period must be at least 1 year and during this period the customer should not have taken any kind of claim. Refund can be claimed on the premium of a policy with a period of more than one year.
Along with this, now the customer can cancel the policy even on the basis of fraud being proved. Before cancelling the policy, the customer has to issue a notice to the company only 7 days in advance. Along with this, insurance companies have also been asked to give options like pay as you drive and pay as you go to the customers.
