New Delhi. The Insurance Regulatory and Development Authority (IRDA) has taken a big decision in the interest of health insurance policyholders. IRDA has issued a circular on health insurance on Wednesday and clarified that the insurance company will have to take a decision on allowing cashless treatment within one hour of receiving the claim request from the policyholder

At the same time, insurance companies will have to settle the claim within three hours of receiving the discharge request. If the claim is not settled within three hours, then the insurance company will reimburse the hospital charges incurred for it.

IRDA said this

IRDA said that the latest circular issued on health insurance products has repealed the circulars issued earlier. This is an important step towards strengthening the empowerment of policyholders and promoting inclusive health insurance.

The insurance regulator said, 'The circular brings together the entitlements in health insurance policies available to policyholders/prospects at one place for their easy reference and also highlights measures to provide seamless, faster claim experience to policyholders purchasing health insurance and to ensure enhanced service standards in the health insurance sector.'

In case of death of the policyholder during treatment, the insurance company will immediately process the request for claim approval process. Also, the dead body (body of the deceased person) will be removed from the hospital immediately.

These decisions were also taken

• Policyholders having multiple health insurance policies will get the option to choose the policy under which they can receive the acceptable claim amount.
• Insurers are also required to provide a Customer Information Sheet (CIS) with each policy document.
• Insurers may give policyholders the option to opt for such no claim bonus by increasing the sum assured or offering a discount on the premium amount in case there is no claim during the policy term.
• If the policyholder chooses to cancel his policy at any time during the policy term, he will get a refund for the unexpired policy term.