New Delhi. Insurance regulator IRDAI has given important instructions to insurance companies in its new circular on life and health insurance plans in the interest of customers.
In this circular, the Insurance Regulatory and Development Authority (IRDAI) said that insurance companies are expected to send information about premium due date and policy payment, such as maturity or survival benefits, at least one month before the due date. The regulator has said that if the companies fail to meet the deadline, customers can contact the ombudsman. Apart from this, IRDAI has also given important suggestions to insurance companies regarding cashless settlement and free look period in health insurance.
Extension of free look period
IRDAI said that insurance companies should allow a free-look period of 30 days for life and health insurance policies. Also, on free-look cancellation, customers should get the premium amount refunded within 7 days. Apart from this, services related to policy loans and changes in the basic policy terms should also be done within a time limit of seven days.
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Cashless claim settlement within 3 hours
In the case of health insurance, the regulator has reiterated that cashless claims should be settled within 3 hours and non-cashless claims should be settled within 15 days. Apart from this, IRDAI has said in the master circular to provide necessary information at various stages of the insurance contract and make it mandatory to have a customer information leaflet with policy details. Insurers have been asked to offer proposal forms in regional languages.
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