Active Stocks
Wed May 29 2024 15:50:35
  1. State Bank Of India share price
  2. 822.95 -0.96%
  1. Tata Steel share price
  2. 174.20 -0.37%
  1. HDFC Bank share price
  2. 1,507.85 -1.48%
  1. Power Grid Corporation Of India share price
  2. 317.55 1.52%
  1. ITC share price
  2. 430.80 0.44%
Business News/ Money / Personal Finance/  IRDAI tells insurers to make insurance policies easily understandable via CIS. Details here
BackBack

IRDAI tells insurers to make insurance policies easily understandable via CIS. Details here

The insurers are meant to make insurance policies simpler to understand for policy holders

Customer information sheet has been devised and will be provided by all insurers to all policyholdersPremium
Customer information sheet has been devised and will be provided by all insurers to all policyholders

The insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) has instructed insurers — via a circular on Oct 30 — to release a revised customer information sheet (CIS). This is aimed to ensure that the customers understand the basic features with regards to policy in simple words.

The customer information sheet is meant to be provided to all policyholders by insurers including both life insurance providers and health insurance providers, ordered the regulator. 

The current customer information sheet seeks to convey basic information about the policy purchased in a manner that is easily comprehensible.

Symmetry noticed

The decision with regards to revised customer information sheet (CIS) was taken after a number of complaints were received regarding asymmetry of information between insurer and the policyholder.  

The insurer will also provide a web link, reads the circular, where the product-related documents including the customer information sheet are available on the website.

Requirements to be met

The CIS will be made available in local language if the policyholder so desires. It is incumbent upon insurers to fill in all details in the sheet. The text in the sheet will have a  minimum font size of 12 (ariel) or above. 

Moreover, the insurer will be supposed to take confirmation of the policyholder regarding receiving of the customer information sheet.

Contents of CIS

These are the details that will be mandatorily covered in the Customer Information Sheet:

I. Name of insurance policy

II. Policy number

III. Type of policy: Indemnity, benefits and both.

IV. Sum insured: To include individual sum insured and floater sum insured.

V. Policy coverage: To include what all will be covered.

VI. Exclusions: Insurer has to ensure that all the applicable exclusions are listed here. 

VII. Waiting period: Initial and specific waiting period, and coverage of pre-existing diseases.

VIII. Financial Limits of coverage

IX. Claims/ Claims procedure: Details of procedure to be followed for cashless service as well as for reimbursement of claim including pre and post hospitalisation. 

X. Policy servicing: To include the call centre number of the insurer.

XI. Grievances/ complaints: This is meant to include the details of a grievance redressal officer. 

XII. Things to remember: This will entail details such as free look cancellation, policy renewal, migration, change in sum assured and moratorium period.

XIII. Your obligations: This will include things like pre-existing diseases.

The revised format of customer information sheet will be implemented with effect from Jan 1, 2024.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 31 Oct 2023, 05:05 PM IST
Next Story footLogo
Recommended For You