Compensation within 15 days: IRDAI has updated life insurance norms. If the life insurance policyholder dies without investigation, the insurance company must pay the compensation within 15 days of receiving the claim application.
The Insurance Regulatory and Development Authority of India (IRDAI) has specified that an investigation should be completed within 45 days if required.
It has directed insurance companies to disburse the amount within seven days of taking possession of the policy. A master circular has been issued stating that payments for expired policies should be settled on the expiry day.
If you are dissatisfied with the policy:
A ‘freelook period’ of 30 days from the date of receipt of documents applies to individuals with health and life insurance policies. If you are unsatisfied with the policy terms, you can return the policy within this period without providing any reasons. If the insurance companies do not comply, a complaint can be filed with the ombudsperson.
Insurers should request any additional required documents when issuing new policies within 7 days. Policy documents must be provided to the insured within 15 days.
IRDAI has clarified that the premium is not required along with the insurance policy application. It is paid once the application is approved. This provision does not apply to policies where coverage starts immediately after premium payment.
Companies are required to establish a ‘search tool’ on their websites to identify insurance policy sellers.
When applying for a life insurance policy, policyholders should be informed about the freelook period, policy document, replacement proposal, and examples of policy benefits.
Customer Information Sheet (CIS) must be provided, including the type of policy, policy amount, coverage, benefits, exclusions, claims procedure, ombudsperson’s address for complaints, and other relevant details.
A similar CIS should be provided for health insurance policies, containing information about policy details, sub-limits, co-payments, waiting periods, and coverage exclusions.