Insurance Companies Asked to Provide Policy Details in Easily Understandable Manner Starting January 1st
In a significant move, the Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for insurance companies to furnish policy details, such as the sum assured, coverage specifics, exclusions, and claims procedure, in a standardized format, starting January 1st, 2024. This long-standing customer demand, which has been ignored for too long, is finally being addressed. The move is aimed at making it easier for policyholders to understand the terms and conditions of their insurance policies.
The IRDAI has updated the Customer Information Sheet (CIS) to include the fundamental details about the purchased policy in a more comprehensible format. The revised CIS will be implemented starting January 1st, 2024.
The IRDAI stressed the importance of policyholders understanding the terms and conditions of their insurance policies. “Since a policy document may be fraught with legalese, it is imperative to have a document that explains in simple words the basic features with regards to the policy and provides necessary information,” the circular added.
According to the IRDAI, most complaints arise from communication problems between insurers and policyholders. This is why they have introduced an updated CIS. Under the revised CIS, insurers must furnish details such as the name of the insurance product/policy, policy number, type of insurance product/policy, and sum insured.
“In response to the recent IRDAI circular, we see it as an affirmation of our commitment to demystify insurance for all. These changes prioritize the interests of policyholders by ensuring they receive clear and concise information about their insurance policies. Policyholders must have a complete understanding of the terms and conditions of their insurance coverage. With the revised customer information sheet (CIS) now in place, policyholders will have easy access to vital information, such as the sum assured, policy coverage, exclusions, claims procedure, and more. This development not only enhances transparency but also empowers policyholders to make informed decisions about their insurance needs,” said Dhirendra Mahyavanshi, CEO & Cofounder, Turtlemint.
As per the circular, insurers, intermediaries, and agents are obligated to reach out to all policyholders and hand over the Customer Information Sheet (CIS) and obtain an acknowledgment thereof. Moreover, the CIS can be provided in the local language if the policyholders prefer it.
