IRDAI: Insurance companies will have to provide information to the policyholder about the basic aspects of a policy such as the sum assured and expenses covered under the policy along with the claim in a prescribed format from January 1.
Insurance Regulatory and Development Authority of India (IRDAI) has revised the existing Customer Information Sheet to easily explain the basics of the policy purchased to the insurance holders.
Insurance regulator issued circular in this regard
The insurance regulator said in a circular sent to all insurance companies in this regard that the revised Customer Information Sheet (CIS) will come into effect from January 1, 2024.
Policy document should be easy- IRDAI
IRDAI said that it is important for the policyholder to understand the terms and conditions of the policy purchased. According to this circular, “A policy document can be full of legal complexities, hence it should be a document that explains the basic points about the policy in simple words and is full of essential information.”
Insurance industry is still struggling with many complaints
According to the circular, many complaints are still coming due to the disparity between the insurance company and the policyholder on policy related points. Keeping this in mind, revised CIS has been issued. In this, insurers will have to tell the name of the insurance product/policy, policy number, type of insurance product/policy and sum insured.
Apart from the expenses included in the policy, all the information will have to be given – IRDAI
Apart from this, policyholders will also be informed about the expenses included in the policy, exclusions, waiting period, financial limit of coverage, claim process and grievance redressal mechanism. According to the circular, the insurance company, intermediary and agent will have to send the details of the revised CIC to all policyholders. If the policyholder wishes, the CIC should be made available in the local language.
