IRDAI directs insurers to periodically notify policyholders

With an objective to ensure flow of relevant information to policyholders, IRDAI has recently specified certain norms to be followed by the insurers.

Health insurance policyholders will now be able to get  regular updates and periodical notifications about their policy from the insurance company. IRDAI now feels it to be important to periodically notify the policyholders about certain relevant and important details relating to health insurance coverage. IRDAI has asked the insurers to initiate the process at the earliest and not later than 1 June, 2021.

The information will be communicated by insurers to all the policyholders twice in a year, i.e., 6 months after issuance of policy and at least 1 month prior to the renewal due date. In case of a multiyear policy, the information can be shared with a frequency of 6 months from the date of issuance of policy.

In addition, in the event settlement of any claim under a health insurance policy, the insurer will also communicate the details of balance sum insured along with the cumulative bonus available, if any, to the policyholder. This will be notified to the policyholders within 15 days of settlement of claim.