Left Menu
Development News Edition

Policyholder to know claim settlement status from Insurance companies from July

Devdiscourse News Desk | New Delhi | Updated: 10-04-2019 15:02 IST | Created: 10-04-2019 14:48 IST
Policyholder to know claim settlement status from Insurance companies from July
Insurers need to adopt a clear and transparent communication policy to protect the interest of policyholders, it said in a circular. Image Credit: "The continued functioning of SIIs is critical for the uninterrupted availability of uninterrupted insurance services to the real economy," said the Insurance Regulatory and Development Authority of India (Irdai). (Wikimedia)

Insurance companies will have to inform about claim settlement status to policyholders at various stages of processing from July, Irdai said Wednesday. Insurers need to adopt a clear and transparent communication policy to protect the interest of policyholders, it said in a circular.

When it comes to claims, there is a need to make available a tracking mechanism for policyholders so as to enable them to know the status of their claims, it added. "In order to ensure fair and transparent claim settlement procedures, all insurers shall notify about the status of the claim at various stages of its processing.

"In case of health insurance, where third-party administrators (TPAs) are engaged for rendering claims services, it is the responsibility of insurers to ensure that status of claim shall be notified to the claimant at every stage of claim," the Insurance Regulatory and Development Authority of India (Irdai) said. Clear and transparent communication play a vital role in servicing of insurance policies and in ensuring that the benefits of insurance policies flow to the beneficiaries in a timely manner, it added.

Irdai also asked insurers -- life, health and general -- to send all communication about issuance and servicing of policies through letter, e-mail, SMS or any other electronic form approved by it. "In case of health insurance, where TPAs are engaged for rendering health services, insurers shall ensure that all related communications such as the issuance of ID card are sent either by the TPA or shall be carried out by insurers on their own," the circular said.

The companies will also have to send brief messages to customers to enhance awareness apart from sending necessary caution messages like not falling prey to spurious calls/offers. Insurers may use simple, easy to read and understand language. And wherever feasible, the communication should be in regional or local language of the place of residence of the claimants, besides English/Hindi, the authority said.

"This shall be implemented by insurers with effect from July 1, 2019," Irdai said.


TRENDING

OPINION / BLOG / INTERVIEW

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...

Videos

Latest News

CIPET renamed as Central Institute of Petrochemicals Engineering & Technology

Central Institute of Plastics Engineering Technology CIPET has been renamed as Central Institute of Petrochemicals Engineering Technology CIPET, a premier national institution under the Ministry of Chemicals and Fertilizers, Govt. of Indi...

Soccer-Australia's A-league to resume in July - Football Federation Australia

Australias A-League, which was suspended in March because of the coronavirus outbreak, will resume in mid-July providing an agreement can be reached with broadcasters, Football Federation Australia said on Thursday. The plan for the complet...

Hungarian central bank deputy governor Nagy unexpectedly resigns

Hungarian central bank Deputy Governor Marton Nagy, who oversaw the banks monetary policy, financial stability, and lending programs, has resigned, the National Bank of Hungary NBH said on Thursday.The NBH said Nagy, whose six-year term on ...

Overnight operations in Jhansi to clear swarms of locusts

Overnight operations were carried out by the administration and agriculture department to clear swarms of locusts in Moth and Garautha areas of the district, official said on Thursday. A large number of locusts has been eliminated with spra...

Give Feedback