Insurers are expected to review and streamline the processing of claims by ensuring only such documentation necessary to substantiate claim quantum, to ensure expeditious final settlement.
The Insurance Regulatory and Development Authority of India (Irdai) has instructed all insurance companies to speed up payment and survey of insurance claims to the victims of the Wayanad floods in Kerala, according to an Irdai statement issued on August 2. It has also directed insurers to mobilize their resources for immediate service response, which includes outsourced functions such as surveyors, loss adjusters, and investigators, to landslide victims of Wayanad.
“All insurance companies are advised to mobilize all resources to ensure immediate service response including outsourced functions such as surveyors, loss adjustors, and investigators. Specifically, nominate a Senior Executive to act as the nodal claims officer overseeing the claims response. The nodal officer appointment should be communicated to the Chief Secretary concerned of the state immediately. Districts reporting large numbers of claims may be overseen by a designated district claims service head,” according to the Irdai statement.
Over 350 people died and 200 still missing in the major landslide in Wayanad, Kerala. However, most people are still unlikely to get benefits as they are largely uninsured. While properties worth crores were damaged and destroyed, people must rely on the government and other agencies for compensation and rebuilding their lives. As less than 10 per cent of property or people are insured in India, a big protection gap exists in India.
According to the Irdai mandate, both life and general insurers have to appoint a senior executive as the nodal officer to manage claims linked to the landslides. It has also directed that the designated district claims service head to manage districts with a high volume of claims, and contact details of state and district heads to be published on the insurer’s websites and widely publicized in the press.
Irdai also said that the insurers have to appoint an adequate number of surveyors and loss adjusters and if needed, resources from neighbouring states could also be deployed.
To expedite the final settlement, insurance companies are also expected to review and streamline claims processing by ensuring only such documentation necessary to substantiate claim quantum.
Irdai said that the claim may be considered without insisting on a death certificate, in case of claims related to loss of life, when it is difficult to receive a death certificate due to non-recovery of the body, if the details of the insured match with the details of the deceased published by state or state government or appropriate government authorities.
Irdai said the claims related to loss of life could be processed without a death certificate in case the body is not recovered. The claim can be considered if the insured’s details match those published by state or government authorities about the deceased.
“Insurers shall encourage policyholders to use electronic communication wherever possible for correspondence while initiating the claim and filing all the relevant documents. Efforts shall be made to ensure that digital processes are resorted to the extent possible for assessment of claims,” according to Irdai's statement.
The finance ministry on Saturday asked public sector insurance companies such as Life Insurance Corporation of India (LIC) to expedite claims to Kerala Wayanad landslide victims.
Says the X post by the finance ministry: “Given the unfortunate landslide incident and heavy rains in Kerala, the government has mandated the Public Sector Insurance companies (PSICs), including LIC, National Insurance Corporation, New India Assurance, Oriental Insurance, and United India Insurance to extend all possible support to the victims of the calamity so that the insurance claims can be expeditiously processed and paid.”