New Delhi: Insurance regulator IRDAI ramped up the timeline for insurance companies to process claims on the death of a customer to half the time taken earlier, it said on Thursday, in a master direction that compresses 30 previous directives.
IRDAI has slashed the insurance claims settlement timeline to 15 days in cases which do not require any probe. The insurance sector watchdog also cut the timeline for claims settlement in cases that require a probe to 45 days from 90 days earlier. The watchdog has also instructed insurers to settle the claims related to the following categories on their stated due date:
S. No.
Claim category
1
Maturity
2
Survival benefit
3
Annuity
The withdrawal or surrender of an insurance policy should be processed in a matter of 7 days, the insurance regulator said.
What is the new timeline for insurance claims settlement?
IRDAI in its master circular laid out strict timelines for processing of claims, new business proposals, intimations for premium due date and free-look period. FInd out more here:
Free-look period for life and health insurance plans
In an innovative approach towards consumer interests, the IRDAI directed insurers in the health and life segments to issue a refund in 7 days if a customer exercises their right to cancel their policy after a free look. Insurers must offer a 30-day free look period to customers so that they are satisfied with the insurance plan they seek to purchase.
Premium intimations
Insurers must intimate customers about their premium due date payments at least 30 days in advance. Failing this customers are entitled to complain against the insurer to the ombudsman.
Policy on new policy proposals
Insurers are required to process new business proposals and ensure that additional documents are requested within a 7-day timeline. The policyholder must receive the proposal form and policy copy in 15 days, according to IRDAI’s master circular.
Health insurance claims
Speaking about cashless and non-cashless claims in health insurance, the IRDAI stated that the deadline for their settlement is 15 days. Insurers must process new business proposals for health insurance in just 7 days and ensure that policy documents are furnished to customers within 14 days.
ULIP deadlines
Insurers are required to process requests for top-ups and switching in 7 days. In a boost to consumer rights, IRDAI has set a 14-day timeline for grievance redressal. In the absence of redressal, consumers must receive an update from the insurer within 14 days of the filing of the complaint in original.
IRDAI master circular: The insurance sector watchdog has compiled over 30 previous circulars in a Master Circular in which it lays down detailed deadlines for different types of claims and documentation. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
