IRDAI Requests Insurance Companies To Fast-Track Claims For North India Floods
The Insurance Regulatory and Development Authority of India (IRDAI) has instructed general insurance companies and standalone health insurers to speed up the handling of flood-related claims in Himachal Pradesh, Punjab, Haryana, and Delhi. They are required to establish 24x7 helplines for claim intimations and conduct awareness campaigns to communicate their actions. Similar advisories have been issued by IRDAI to insurance companies in the past for natural calamities, including the recent Odisha train tragedy in June 2023.
Sanchit Malik, Co-founder & CEO, Pazcare, said, “In the wake of devastating floods sweeping across North India, IRDAI's urge to expedite flood-related claims comes as a vital lifeline for those affected. As someone working closely with end users and as well the insurers, we recognise that such disasters impose a crippling financial strain on households and businesses alike. Hence, IRDAI's directive goes beyond mere policy - it addresses the urgency of alleviating this strain, helping those affected regain their footing."
For districts expected to have a significant number of claims, insurance companies must appoint a district claims service head. Additionally, they are required to publish the names and contact information of these officials on their websites.
Sanchit added, "The crux of this guidance from IRDAI is not just the speed of processing claims, but also the establishment of Special Claims Desks and interim payments. Such measures recognise that amid uncertainty and loss, quick access to financial resources can spell the difference between prolonged hardship and timely recovery."
Furthermore, IRDAI urged insurance companies to promote the use of digital communication channels for policyholders to initiate claims. Also, to expedite settlement processes, insurers should request policyholders to provide only those documents that are absolutely necessary. Malik said “IRDAI’s pragmatic approach, advising insurers to ask only for necessary documentation, underlines a deep understanding of ground realities in situations where documentation may be lost or damaged. At the heart of it, IRDAI's directive calls upon insurers to step up in service of their communities - to be more than a contract, but a hand extended in times of need."
