New Delhi. The Insurance Regulatory and Development Authority of India ( IRDAI ) has made changes in the insurance rules. IRDAI has made changes in the rules of general insurance. For this, IRDAI has issued a master circular.

According to the master circular of IRDAI, now insurance companies cannot reject claims due to lack of documents. This rule is only for general insurance. This circular is part of the reforms in general insurance. It marks the beginning of a new era of measures for simplified and customer-centric insurance solutions.

The comprehensive Master Circular on General Insurance Business also repeals 13 circulars. IRDA said that the provision of easy-to-understand insurance products designed to meet the individual needs of customers, provide them with adequate choice and enhance their insurance experience has now been enabled.

As per IRDA circular

No claim will be rejected for want of documents. The required documents will have to be called for while underwriting the proposal. The customer may be asked to submit only those documents which are necessary and related to the claim settlement.

Apart from this, retail customers can cancel the policy at any time by informing the insurer. On the other hand, the insurer can cancel the policy only on the basis of established fraud. The circular states that the insurer will have to refund the proportionate premium for the unexpired policy period on cancellation.

Irda became strict

IRDA has also provided strict timelines for settlement of claims, including appointment of surveyors and submission of their reports. It shall be the duty of the insurer to obtain the survey report in time, IRDA said.

In Motor Insurance, the customer will be given additional options of 'pay as you drive'/'pay as you go' as the first choice. At the same time, there should be no burden on the customer for settling the claim.

In addition, the “fire” policy must have the option to choose add-on covers such as flood, cyclone, earthquake, landslide, rock slide, terrorism or opt out of a comprehensive fire and allied risks policy. Insurers must also provide a customer information sheet (CIS) to provide clear and concise policy details, including scope of coverage, exclusions, warranties and claim settlement process.