IRDA Regulations for Protection of Policyholders

In April 2002, IRDA (Insurance Regulatory and Development Authority Of India) has issued regulations for the protection of the interests of the policyholders.

* The decision on the proposal must be taken and conveyed to the proposer within 15 days of proposal for insurance cover
* Copies of proposal form must be sent to the proposer within 30 days of acceptance of proposal
* If the policyholder wants the policy to be cancelled he can go for the cancellation of policy within 15 days after issue of policy and can claim refund of premium paid less premium for proportionate risk, medical expenses and stamp duty
* Decision on the claim should be taken and conveyed to the insured or the person entitled within 30 days of receipt of papers for settlement
* Investigation if needed should be completed within 6 months
* If there is any delay in settling claim, penal interest will be paid at saving bank rates if the delay is because of the claimant or at 2% over that rate if delay is because of the insurer
* The Insurer should respond to the letter of policyholders within 10 days

These are the few regulations that are made to safeguard the interests of the policyholders.

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