The Insurance Regulatory and Development Authority of India (IRDAI) has issued a directive urging insurance companies to integrate their IT systems with Digilocker, aiming to improve the efficiency and accessibility of services for policyholders.
This move is part of a broader initiative outlined in IRDAI’s Master Circular on the Protection of Policyholders’ Interests, which consolidates 30 previous circulars into a comprehensive document. The updated regulations, contained within the IRDAI (Protection of Policyholders’ Interests, Operations, and Allied Matters of Insurers) Regulations, 2024, emphasize providing a seamless, transparent, and hassle-free claims settlement process, fostering greater trust within the insurance industry.
Under the new guidelines, insurers are required to provide essential information to policyholders at various stages of the insurance contract, from pre-sale to claims.
Additionally, both life and general insurers must supply a customer information sheet (CIS) outlining key policy features, benefits, and exclusions, available in regional languages upon request. Policyholders will also benefit from a 30-day free look period, allowing them to review the terms and conditions of their policies.
Furthermore, the circular prohibits insurance companies from accepting premium deposits with the proposal form for life and health insurance policies, except when immediate risk coverage is provided.
Insurers must also provide an online tool for verifying authorized distribution channels and collect nominee details, including bank account information, at the proposal stage to ensure prompt claim settlements. Through these measures, IRDAI aims to enhance service standards and create a more transparent and efficient insurance environment for customers.
