Irdai asks insurers to share status of claims with policy holders from July 1
New Delhi: Insurance companies will have to inform about claim settlement status to policyholders at various stages of processing from July, Irdai said Wednesday.
Insurers need to adopt a clear and transparent communication policy to protect the interest of policyholders, it said in a circular.
When it comes to claims, there is a need to make available a tracking mechanism for policyholders so as to enable them to know the status of their claims, it added.
"In order to ensure fair and transparent claim settlement procedures, all insurers shall notify about the status of the claim at various stages of its processing.
"In case of health insurance, where third party administrators (TPAs) are engaged for rendering claims services, it is the responsibility of insurers to ensure that status of claim shall be notified to the claimant at every stage of claim," the Insurance Regulatory and Development Authority of India (Irdai) said.
Clear and transparent communication play a vital role in servicing of insurance policies and in ensuring that the benefits of insurance policies flow to the beneficiaries in a timely manner, it added.
Irdai also asked insurers — life, health and general — to send all communication about issuance and servicing of policies through letter, e-mail, SMS or any other electronic form approved by it.
"In case of health insurance, where TPAs are engaged for rendering health services, insurers shall ensure that all related communications such as issuance of ID card are sent either by the TPA or shall be carried out by insurers on their own," the circular said.
The companies will also have to send brief messages to customers to enhance awareness apart from sending necessary caution messages like not falling prey to spurious calls/offers.
Insurers may use simple, easy to read and understand language. And wherever feasible, the communication should be in regional or local language of the place of residence of the claimants, besides English/Hindi, the authority said.
"This shall be implemented by insurers with effect from July 1, 2019," Irdai said.
11. Commerce ministry asks health ministry to frame law to ban manufacture, sale of e-cigarettes (336)
New Delhi, Apr 10 (PTI) The commerce ministry has asked its health counterpart to frame law banning manufacture and sale of e-cigarettes in the country as in the absence of a domestic legislation, it would not be possible to put a blanket ban on its imports, sources said.
The health ministry had asked the commerce ministry to issue a notification banning import of Electronic Nicotine Delivery Systems (ENDS), including e-cigarettes and flavoured hookah.
"Without banning domestic sale and manufacturing of ENDS through a law, it will be an infringement of global trade norms to put an import ban," one of the sources said.
In August last year, the health ministry had issued an advisory to all states and Union Territories (UTs) to stop the manufacture, sale and import of ENDS after the Delhi High Court took strong exception to the Centre for delay in coming up with appropriate measures to tackle the "new emerging threat" of e-cigarettes in the country.
In March, the Central Drugs Standard Control Organization also directed all drug controllers in states and UTs not to allow the manufacture, sale, import and advertisement of ENDS, including e-cigarettes and flavoured hookah, in their jurisdictions.