IRDAI panel to study feasibility of paying claims in installments

The Insurance Regulatory and Development Authority of India (IRDAI) has formed a panel to examine the feasibility of payment of general and health insurance claims in instalments. “Some general and health insurance companies have proposed payment of claims in instalments in respect of personal accident policies and benefit-based health policies as against lump sum payments,” IRDAI said in circular.

The concept of settlement of claim benefits in instalments will enable the beneficiaries/claimants receive payments in a series of pre-determined instalments, it said.

In order to examine the proposal, the regulator has constituted a working group with Suresh Mathur, ED (Health), IRDAI, as its chairman.

The panel will look into the need for allowing settlement of personal accident and benefit-based health insurance claims in instalments by general and health insurance companies.