IRDAI has issued a master circular to make policyholders aware of their rights. Many people buy health policies and life insurance policies but they do not understand their terms and conditions properly. This creates problems for them in using the policy when needed.
Do you have a life insurance and health insurance policy? If yes, how much do you know about them? Actually, most policyholders do not have complete information about their insurance policy. Due to this, they face difficulty in using their policy when needed. Keeping this problem in mind, Insurance Regulator IRDIA has issued a master circular on September 5. Its purpose is to make policyholders aware of their rights. This circular includes many important things about life insurance and health insurance. Moneycontrol is telling you about those things which are directly related to you.
30 days free-look period
The life insurance company has to give a free look period of 30 days to the policyholder . During this time, the policyholder can study his policy. He can understand its terms and conditions. If he is not satisfied with the terms and conditions of the policy, then he has the right to cancel his policy. Earlier, companies used to give a free look period of 15 days. Most policyholders were not aware of this facility.
Death claim settlement deadline
It is important for you to know how much time the insurance company can take to settle the death claim in case of the death of the policyholder. The insurance regulator has said that in cases of death where investigation is not necessary, the insurance company will have to settle the death claim within 15 days of the start of the process. In cases where investigation is necessary, the insurance company will have to settle the claim within 15 days of the start of the process.
Interest on delay in claim settlement
IRDAI has said in the master circular that if a policyholder wants to surrender his policy or withdraw some money, then the insurance company will have to complete the process within 7 days of filing the application. Similarly, the payment of maturity or survival benefit of the policy will have to be made on the due date. If the insurance company delays settlement, then it will have to pay interest at the rate of bank rate plus 2 percent on the period from the start of the process to the date of payment.
Nomination is necessary at the time of purchasing the policy
If a person buys an insurance policy, he has to mention the nominee in the proposal form itself. In case of the death of the policyholder, the insurance company pays the insurance cover amount to the nominee. The policyholder can make one or more persons as nominees. He can also decide how much share of the sum assured will be given to each nominee.
Settlement of Health Insurance Claim
If the insurance company receives a request for cashless authorization, it has to approve it within one hour. In case of discharge of the patient from the hospital, the insurance company has to approve it within three hours of receiving the authorization request. The insurance regulator has said in the master circular that under no circumstances should the patient have to wait for discharge due to delay in authorization by the insurance company.
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