Irdai has asked insurance companies to settle or reject a claim, as the case may be, within 30 days from the date of receipt of last necessary document, reports The Economic Times.
In the case of delay in the payment of a claim, the company will be liable to pay interest to the policyholder from the date of receipt of last necessary document to the date of payment of claim at a rate 2 per cent above the bank rate.
It also said the policy will become void and all premium paid will be forfeited to the company in the event of misrepresentation, misdescription or non-disclosure of any material fact by the policyholder.
On portability, the guidelines said the insured person will have the option to port the policy to other insurers by applying to such insurer to port the entire policy along with all the members of the family, if any, at least 45 days before, but not earlier than 60 days from the policy renewal date.
If such person is presently covered and has been continuously covered without any lapses under any health insurance policy with an Indian general/ health insurer, the proposed insured person will get the accrued continuity benefits in waiting periods.