In a new circular released by the Insurance regulator IRDAI, insurance companies will have to inform about claim settlement status to policyholders at various stages of processing from July. Insurers need to adopt a clear and transparent communication policy to protect the interest of policyholders, it said in the circular, reported The Economic Times.
When it comes to claims, there is a need to make available a tracking mechanism for policyholders so as to enable them to know the status of their claims, it added. "In order to ensure fair and transparent claim settlement procedures, all insurers shall notify about the status of the claim at various stages of its processing.
"In case of health insurance, where third party administrators (TPAs) are engaged for rendering claims services, it is the responsibility of insurers to ensure that status of claim shall be notified to the claimant at every stage of claim," the Insurance Regulatory and Development Authority of India (Irdai) said.
Irdai also asked insurers—life, health and general—to send all communication about issuance and servicing of policies through letter, e-mail, SMS or any other electronic form approved by it.
The companies will also have to send brief messages to customers to enhance awareness apart from sending necessary caution messages like not falling prey to spurious calls/offers.