Susheel Agarwal
Recently, the Insurance Regulatory and Development Authority of India (IRDAI) introduced some significant reforms in its latest master circular for general insurance. These reforms aim to streamline and enhance the regulatory framework, ensuring better protection and service for policyholders. IRDA's reform circulars aim to empower policyholders with the right services and fewer grievances. These reforms aim to achieve "Zero-Grievances" through various facilities which include a mandate for insurers to imply technology-driven mechanisms for efficient and speedy grievance redressal, consumer-friendly claim processes, and running awareness campaigns.
The master circular also brought the phygital approach for the insurer to penetrate their services and reach the remote areas of the country. The phygital approach is a communication model that requires a balanced combination of digital and physical approaches to inform and educate policyholders.
Policyholders now have the option to access online services or be assigned a new insurance agent or sales representative for seamless policy servicing if their current intermediary is no longer with the insurer.
This mandate is a moving step towards resolving thousands of grievances going unaddressed. The insurance broking firms have been playing a pivotal role in keeping the policyholder's rights secured. We at Ethika Insurance have settled many such claims where the insurers have denied claims despite policyholders using the grievance redressal mechanism. In such a scenario the IRDA's move seems very reasonable and good for policyholders.
Another moving reform of IRDA's circular talks about the Customer Information Sheet (CIS) which will save policyholders from fine prints of policies and help customers to know about their policy's inclusivity, exclusivity, risks, and benefits clearly and concisely.
Furthermore, the "Bima Bharosa" initiative allows policyholders to track unclaimed funds easily and claim their rightful benefits. This reform is expected to greatly benefit policyholders by simplifying the process of accessing unclaimed amounts.
Overall, these reforms are set to bring positive changes to the insurance industry in India, offering greater benefits and reducing ambiguity for policyholders.
Author Profile: Susheel Agarwal is an insurance industry veteran and the founder of Ethika Insurance Broking Pvt Ltd. With nearly two decades of experience in the Indian insurance industry, he possesses extensive knowledge and expertise in the field.
