The Insurance Regulatory and Development Authority of India (IRDAI) has issued Master Circular no. IRDAI/PP&GR/CIR/MISC/117 /9/2024 dated 5th September, 2024 on Protection of Policyholders’ Interests under the IRDAI (Protection of Policyholders’ Interests, Operations, and Allied Matters of Insurers) Regulations, 2024 replacing 30 circulars.
In this circular, it is heartening to note that IRDAI has started addressing not only major concerns but also other ones to improve clarity and transparency in policy wording. Hopefully all these will lead to increased contract certainty, reduce disputes between insurers and policyholders, and strengthen trust in insurers.
CHAPTER IV
ISSUANCE OF INSURANCE POLICIES
15. Matters to be stated in Insurance policies [refer regulation 11(b)]
15.1. Insurers shall use at least font size eleven (11) in insurance policies.
15.2. Policy documents shall include such other details as specified in Schedule C.
General Principles governing issuance of life, General and Health insurance policies
16. Insurers shall endeavour to
16.1. classify the exclusions, wherever possible as under:
(a) Standard exclusions applicable to all policies;
(b) Exclusions specific to the policy which cannot be waived;
(c) Exclusions which can be opted for cover by paying additional premium.
16.2. categorize policy conditions into following:
(a) Conditions precedent to the contract;
(b) Conditions applicable during the contract;
(c) Conditions when a claim arises;
(d) Conditions for renewal of the contract;
(e) Conditions for cancellation of the contract; and
(f) Conditions for grievances redressal
16.3 Insurers shall mandatorily include in the policy document all the applicable exclusions for a particular product. No further deductions shall be made from the claim amount in the name of any other exclusions.
Links
IRDAI circular Master Circular no. IRDAI/PP&GR/CIR/MISC/117 /9/2024 dated 5th September, 2024
https://irdai.gov.in/web/guest/document-detail?documentId=5625747
Article : India – General Insurance Products – Policy Wording: Clarity and Transparency
India – General Insurance Products – Policy Wording: Clarity and Transparency