Irdai issues norms for sending periodic notices to policyholders

The Insurance Regulatory and Development Authority of India (Irdai) has issued norms for sending periodic notices to policyholders to ensure continuity of relationship with policyholders and flow of information in a standard manner.

All insurers will have to notify relevant and key details relating to health insurance coverage available to policyholders periodically. They will have to comply with the instructions issued in the circular issued on 1 March at the earliest and not later than 1 June 2021. Irdai norms apply to all individual (both indemnity and benefit based) health insurance policies.

As part of policy servicing, insurers will have to communicate the basic information about the health insurance policy to the policyholders. These include the name of product and policy number, the extent of coverage available by way of the available sum insured and cumulative bonus, number of insured people covered under the policy, policy period, number and amount of claim settled (under relevant period), balance sum insured and accrued cumulative bonus available, if any.

The information will also relate to the due date of renewal and premium payment frequency, the premium amount due on renewal (to be specified at the time of renewal), grace period (within 5 days after renewal due date), contact details (for any query or other issues) of customer support service of the insurer, toll-free number or e-mail Id and others.

The information shall be communicated by insurers to all policyholders twice in a year, that is six months after issuance of policy and at least one month before the renewal due date. However, in the case of a multiyear policy, the information can be shared with a frequency of six months from the date of issuance of the policy, said the Irdai circular.

In the event of a settlement of any claim under a health insurance policy, the insurer shall also communicate the details of the balance sum insured along with the cumulative bonus available, if any, to the policyholder. This shall be notified to the policyholders within 15 days of settlement of the claim.

A per the Irdai circular, the insurer may choose any mode of communication (message, e-mail, letter etc.) to notify the information.

Source: Live Mint