Irdai Establishes 12-Member Panel To Streamline Insurance Policy Language

The Insurance Regulatory and Development Authority of India (Irdai) has formed a 12-member committee to streamline the language in insurance policies. This committee, chaired by L Viswanathan, a member of the Insurance Advisory Committee (IAC), will include the Secretary Generals of the Life Insurance and General Insurance Councils, the president of the Insurance Brokers Association of India (IBAI), and the Principal Officer of State Bank of India (Corporate Agent), alongside other experienced professionals from the insurance industry. If necessary, the committee can also seek input from external experts.

The decision was prompted by Irdai's recognition that policyholders often struggle to comprehend the terms and conditions in insurance contracts due to complex language, hindering their ability to make informed choices when buying insurance policies.

This move aligns with Irdai's commitment to achieving "Insurance for All by 2047." The regulator is actively working to create a forward-looking framework that promotes a supportive and accessible environment for policyholders, offering them a wider range of options and affordability.

The regulator's statement regarding the committee's formation states, "In pursuit of this objective, a committee with the following members has been established to simplify policy language, making it more comprehensible to policyholders."

As per the committee's terms of reference, they are tasked with reviewing existing policies and providing clear, legally sound language that specifies the obligations and responsibilities of all parties involved in the insurance contract. They may also suggest appropriate typefaces for written materials. The committee is expected to present its recommendations within 8-10 weeks.