Insurers have been directed to streamline their claim settlement process, including engaging surveyors and investigators, and in special circumstances, even settle claims where obtaining death certificate might be difficult, after needful scrutiny.
With Cyclone Remal causing widespread damage to life and property in various states across India, the Insurance Regulatory and Development Authority of India (Irdai) on June 4, 2024 issued instructions to all life and standalone health insurance companies to expedite their claim settlement process.
The insurance regulator instructed all insurance companies to mobilise all resources possible to ensure immediate service response, including engaging the services of surveyors, loss adjustors, and investigators for the quick settlement of claims arising out of the devastation wreaked by the cyclone and subsequent floods as a result of heavy rainfall.
Accordingly, insurers have to appoint a senior executive to coordinate with the chief secretary and the designate district claims service heads in the high-claim areas. They must publicise the contact details of these officers and maintain 24x7 helplines, alongside special claims desks, to ensure efficient assistance to the claimants and/or beneficiaries.
“The insurers have been advised to communicate the nomination of a senior executive to the chief secretary immediately. Districts reporting large numbers of claims are to be overseen by a designated district claims service head. The insurers are to give wide publicity on the contact details of these officers on their websites and in the media,” Irdai said in a press statement.
Insurers have also been advised to use electronic communication to streamline processes and facilitate prompt claim settlements, both while initiating the claim and filing the relevant documents.
“Concerning claims involving loss of life, where difficulty is experienced in obtaining a death certificate due to non-recovery of body etc., if the details of the insured match with the details of the deceased published by state/central government or appropriate/govt. authorities., the claim may be considered without insisting on a death certificate,” Irdai further said in its circular.
According to experts, natural calamities like these call for swift action as they bring about widespread loss of life and livelihood.
Says Naval Goel, founder and CEO, PolicyX.com, an insurance web aggregator: “Usually in these scenarios, the insurance regulator calls for prompt claim settlement, which is a relieving move for the policyholders getting affected. The policyholders should reach out to the insurers as quickly as possible via any of the available digital modes to get quick back up for their health or to get monetary back up in case of death.
Adds Rakesh Jain, CEO, Reliance General Insurance: “It is important to expedite the claim settlement process in these circumstances. Surveyors, loss adjustors, and investigators have been kept on standby round-the-clock to enable quick resolution of claims that are likely to be received in the aftermath of flooding due to the cyclone. Our goal is to provide immediate income relief to people suffering as a result of this natural disaster.”