Redefined Insurance Policy Information for Policyholders
Introduction:
Starting from next year, policyholders can expect significant changes in their insurance policies. In order to address the common confusion faced by customers while purchasing insurance policies, the insurance regulator IRDAI has taken steps to ensure clarity and transparency in policy documents. This article discusses the revised format of the Customer Information Sheet (CIS) and its implications on policyholders.
Addressing Customer Confusion:
Customers often find it challenging to understand the features and terms and conditions of insurance policies, leading them to skip reading the document entirely. Recognizing this issue, the IRDAI has issued a mandate to insurers to present the basic features of insurance policies in simple language, using a predefined format specified in the CIS.
Revised Format of CIS:
The new format of the CIS will be implemented from January 1st of the upcoming year. Insurers are now required to send concise and updated CIS to policyholders, providing all relevant information related to the policy. This measure aims to bridge the information gap and promote transparency between insurers and policyholders.
Enhancing Policyholders’ Awareness:
The introduction of these rules is driven by the desire to enhance policyholders’ awareness and understanding of their insurance policies. Through the CIS, policyholders will receive important information in a predefined format. The CIS will include details such as the name and type of the insurance product, policy number, sum insured, coverage details, exclusions, waiting periods, financial limits of coverage, claims procedures, policy servicing information, grievance redressal mechanisms, reminders, and policy obligations.
Policyholder Confirmation:
Insurers are now required to obtain an acknowledgement from policyholders, confirming that they have received and understood the details provided in the CIS. This ensures that policyholders are fully aware of the terms and conditions of their policies.
Impact on Health Insurance:
The CIS for health insurance policies is designed to provide policyholders with essential information in simple language. It includes the following details:
- Name and type of policy
B. Coverage details
C. Waiting periods
D. Limits and sub-limits
E. Exclusions
F. Concepts such as free look cancellation, migration, portability, and moratorium period
G. Guidance on claims submission procedures
H. Contact details and web links for filing grievances and complaints
Benefits of Revised CIS:
The IRDAI expects that this step will result in better-informed policyholders, leading to reduced disputes, fewer delays, and a seamless health insurance experience. By providing clear and concise information, policyholders can make well-informed decisions and understand their rights and obligations.
Policyholder Responsibility:
It is important for policyholders to make transparent and fair disclosures of relevant material information related to their health. Failure to disclose such information can have implications on claim settlements. Therefore, policyholders are urged to provide accurate and complete information to ensure a smooth and hassle-free claims process.
In conclusion, the revised CIS format mandated by the IRDAI aims to enhance clarity and transparency in insurance policies. By providing policyholders with concise and easily understandable information, insurers hope to empower customers and improve their overall experience. This step not only benefits policyholders but also promotes fairness and accountability in the insurance industry.
Disclaimer:
Estabizz Fintech compiled the material in this article using the most recent Acts, Rules, Circulars, Notifications, Provisions, Press Releases, and material applicable at the time. They ensured the completeness and correctness of the material through due diligence. When using this material, users must consult the relevant, applicable legislation. The given data may change without prior notice and does not constitute professional advice. Estabizz Fintech disclaims all liability for any results from the use of this material.
