IRDAI introduces "Customer Information Sheet" to simplify policy details for buyers

In order to simplify the insurance landscape, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced major reforms in motor, health and home insurance segments.

The new set of reforms has introduced Customer Information Sheet (CIS) to provide clear and concise policy details including scope of coverage, exclusions, warranties, and claim settlement processes.

The regulator in a release called Reforms in General Insurance Business, said these measures will be helpful to simplify the insurance sector, effectively enhancing the customer-centric insurance solutions. The reforms will help insurers in their operations, it added.

As per the new rules, the consumers will have option to choose for insurance policies of half yearly, annual, or even more than a year, providing more choices to fit individual needs and preferences.

IRDAI has introduced a Customer Information Sheet (CIS) to provide clear and concise policy details including scope of coverage, exclusions, warranties, and claim settlement processes.

No claims of the insurance will be cancelled citing the lack of documents.

The customer may be asked to submit only those documents necessary and related to claim settlement, as per the new rules.

Retail customers can cancel the policy anytime by informing the insurer. The policy can be cancelled by the insurer only if it involves fraud. The customer will receive refund proportionate to the premium amount on the unexpired policy period on cancellation.

Insurers will have to offer pay-as-you-drive and pay-as-you-go options to customers as their first choice in motor insurance policies.

Homeowners "fire" policy will have the option to choose add-on covers such as flood, cyclone, earthquake, landslide, rockslide, terrorism or to opt-out from comprehensive fire and allied peril policy.