Commencing from the first day of January, insurance providers are obliged to offer fundamental policy information to policyholders in a uniform format, guaranteeing straightforward comprehension of the stipulations. This directive follows a report from PTI, and it entails that the Insurance Regulatory and Development Authority of India (IRDAI) has revised the existing customer information sheet to render essential policy particulars in a more easily comprehensible style.
New Guidelines for Clearer Insurance Policy Information and Improved Policyholder Understanding
According to PTI, this revised customer information sheet (CIS) is scheduled to be implemented starting from January 1, 2024, as stated in a circular addressed to all insurance companies by the regulators. The IRDAI has emphasized the importance of policyholders understanding the terms and conditions of their insurance policies. The circular also points out that policy documents often contain complex legal language, necessitating a document that simplifies the basic policy features and provides necessary information.
Furthermore, the IRDAI has highlighted the fact that ongoing complaints arise from an information gap between insurers and policyholders, which justifies the introduction of the updated CIS. Under the revised CIS, insurers are obligated to provide information such as the “name of the insurance product/policy,” “policy number,” “type of insurance product/policy,” and “sum insured,” as mentioned in the report.
Empowering Policyholders with Clearer Insurance Information: A Vision of Transparency
Dhirendra Mahyavanshi, CEO & Cofounder of Turtlemint, sees the recent IRDAI circular as an affirmation of their commitment to making insurance more understandable for everyone. These changes prioritize the interests of policyholders by ensuring they receive clear and concise information about their insurance policies. With the revised customer information sheet (CIS) now in place, policyholders will have easy access to essential information, including details about the sum assured, policy coverage, exclusions, claims procedures, and more. This development not only enhances transparency but also empowers policyholders to make informed decisions about their insurance needs.
The circular further stipulates that insurers, intermediaries, and agents are required to distribute the Customer Information Sheet (CIC) to all policyholders and obtain an acknowledgment of receipt. Additionally, the CIC should be made available in the local language if the policyholder requests it, according to the report.
