The insurance regulator is leaving no stone unturned to increase insurance awareness among prospective and existing policyholders in India.
The advertisement by the Insurance Regulatory and Development Authority (IRDA), which is the supervisory body of all insurance companies in India, is issued in the public interest.
It clearly mentions that insurance companies have to settle claims within 30 days of receiving all the documents. In case the insurance company has any dispute in making the claim payment, the company has to revert with the relevant reasons within 30 days.
If there is a delay by the insurance company in settling a claim, then the company is liable to pay the amount plus interest.
On receipt of a proposal from the customer, the insurer must process the request and communicate the same within 15 days. The insurance company must provide a copy of the proposal form, free of charge, and within 30 days from the acceptance of a proposal.
The ‘free look period’ on insurance policies is 15 days from the date of receipt of the policy. A policyholder can cancel the policy within this timeframe.
Lastly, IRDA has specified that insurance companies must respond within 10 days of receiving any communication from their policyholders.