Wayanad Landslides: Irdai Tells Insurers To Disburse Claims At The Earliest

In July 2024, Wayanad, Kerala, experienced devastating landslides that resulted in significant loss of human lives, extensive damage to homes and businesses, and severe disruption to infrastructure. In response, the Insurance Regulatory and Development Authority of India(IRDAI) has directed insurance companies to mobilise all available resources to ensure an immediate and efficient service response. This includes deploying outsourced functions such as surveyors, loss adjustors, and investigators to manage the claims process effectively.

A critical step in this mobilisation is the appointment of a senior executive as the nodal claims officer to oversee the claims response. This appointment must be promptly communicated to the chief secretary of the state. In districts with a high number of claims, a designated district claims service head will be responsible for managing the claims process. To ensure transparency and accessibility, the contact details of the state and district heads should be made available on the insurer's website and published in the press.

Insurance companies are also required to activate and advertise 24/7 helplines to assist claimants and raise awareness about the measures being taken. Special claims desks should be established at the district level, equipped with sufficient delegated claims settlement authorities to facilitate the rapid processing of claims and settlements. This includes the prompt release of interim payments to help with the early reinstatement of property and businesses.

It is essential that all claims are surveyed immediately and that claim payments, including on-account payments, are disbursed as quickly as possible. To achieve this, an adequate number of surveyors and loss adjustors should be engaged immediately, and if necessary, resources from neighbouring states should be deployed.

Policyholders should be encouraged to use electronic communication for correspondence when initiating claims and submitting relevant documents. Insurance companies must strive to use digital processes wherever possible for the assessment of claims. Additionally, the claims processing should be streamlined by ensuring that only the necessary documentation to substantiate claim quantum is required, thus expediting the final settlement.

In cases involving the loss of life, if there are difficulties in obtaining a death certificate due to non-recovery of the body, claims may still be considered if the details of the insured match the details of the deceased as published by State or Central Government authorities. This measure ensures that families are not unduly burdened during an already difficult time.

All insurers, including life and standalone health insurers, are als required to submit information related to claims to IRDAI on a weekly basis for a month. General and health insurers should send their reports to nl-catastrophe@irdai.gov.in, while life insurers should send theirs to life@irdai.gov.in.

“We encourage policyholders to notify and use electronic communication to initiate the claims process and submit documents for a seamless process flow, leading to faster settlement. It is our duty to help ease the burdens on policyholders going through such hardships by providing adequate help at a fast pace,” says Rakesh Jain, CEO, Reliance General Insurance.