Insurance regulator IRDAI has given necessary instructions to insurance companies keeping in mind the protection of the interests of health and life insurance policy holders.
New Delhi. Insurance regulator IRDAI has given important instructions to insurance companies related to the interest of customers in its new circular on life and health insurance plans. In this circular, the Insurance Regulatory and Development Authority (IRDAI) said that insurance companies are expected to send information about premium due date and policy payment, such as maturity or survival benefits, at least one month before the due date. The regulator has said that if companies fail to meet the deadline, customers can contact the ombudsman. Apart from this, IRDAI has also given necessary suggestions to insurance companies regarding cashless settlement and free look period in health insurance.
The duration of free look period should be increased
IRDAI said that insurance companies should allow a free-look period of 30 days for life and health insurance policies. Also, on free-look cancellation, customers should get the premium amount refunded within 7 days. Apart from this, services related to policy loan and change in original policy terms should also be done within a time limit of seven days.
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Settlement of cashless claim within 3 hours
In the case of health insurance, the regulator has reiterated that cashless claims should be settled within 3 hours and non-cashless claims within 15 days. Apart from this, IRDAI has said in the master circular to provide necessary information at various stages of the insurance contract and make it mandatory to have a customer information sheet with policy details. Insurers have been asked to offer proposal forms in regional languages.
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