Insurers To Provide Basic Details Of Policy To Customers From 1 Jan 2024
Insurance companies will have to provide some basic features of insurance policy, a recent Irdai circular directs.
The basic features like the sum assured, what the policy covers as well as exclusions and claim procedure are to be disclosed to the policyholders in a prescribed format from 1 January 2024 for easy understanding of terms and conditions.
The Insurance Regulatory and Development Authority of India (Irdai) has revised the existing customer information sheet (CIS) so as to illustrate basic information about the policy purchased in a format that is easily understandable.
"The revised CIS shall be implemented with effect from 1 January 2024," the regulators said in a circular to all insurance companies.
Irdai said that it is important to make policyholders understand the terms and conditions of the policy that has been purchased.
"These changes prioritise the interests of policyholders by ensuring they receive clear and concise information about their insurance policies. It's crucial for policyholders to have a complete understanding of the terms and conditions of their insurance coverage," said Dhirendra Mahyavanshi, CEO and cofounder, Turtlemint.
With the revised customer information sheet (CIS) now in place, policyholders will have easy access to vital information, such as the sum assured, policy coverage, exclusions, claims procedure, and more.
"This development not only enhances transparency but also empowers policyholders to make informed decisions about their insurance needs," Mahyavanshi added.
"Since a policy document may be fraught with legalese, it is imperative to have a document that explains it in simple words, the basic features with regards to the policy and provides necessary information," the circular said.
It is also important to note that several complaints are still pending as a result of the asymmetry of information between the insurer and the policyholder, Irdai said, while providing a rationale for introducing revised CIS.
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