IRDAI asks life insurers for expeditious settlement of claims in flood-hit areas

IRDAI on Wednesday asked life insurance companies to take immediate action for expeditious settlement of claims in flood-affected areas of Andhra Pradesh, Telangana, Maharashtra and Karnataka.

As a result of recent havoc created by heavy rainfall and floods, there are reports of loss of human lives and belongings in the affected districts of Andhra Pradesh, Telangana, Maharashtra and Karnataka, it said in a circular.

In order to extend every possible facilitation for quick and timely settlement of life insurance claims, it asked the insurers to nominate a senior-level official for acting as a nodal officer in the state. The officer would liaise with the state administration to facilitate identification of policyholders among the deceased due to floods.

The Insurance Regulatory and Development Authority of India (IRDAI) further said the nodal officer should contact the chief secretary or the officer concerned of the state immediately and be in regular contact thereafter.

"Initiate immediate action to ensure that all reported claims are registered and eligible claims are settled expeditiously," the circular to life insurers said.

With regard to claims involving loss of life where difficulty is experienced in obtaining a death certificate due to non-recovery of body, insurers have been asked to consider the process followed in the case of Chennai floods in 2015.

"A suitably simplified process/procedure including relaxations in the usual requirements wherever feasible may be considered to expedite claims settlement," the regulator said.

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Life insurers have also been asked by IRDAI to encourage and motivate their policyholders/claimants to adopt e-modes wherever possible for correspondence while intimating the claim and the procedure for filing all the relevant documents in wake of COVID-19.