Insurance companies will have to provide information about the basics of a policy like the amount insured and expenses covered under the policy along with claims in a prescribed format to policyholders from January 1. Insurance Regulatory and Development Authority of India i.e. IRDA has made changes in the existing customer information sheet. So that policy holders can easily understand the basics of the policy purchased. The insurance regulator said in the circular sent to all the insurance companies in this regard that the revised customer information sheet will come into effect from January 1, 2024.
Information about these things will have to be given
IRDA said in its circular that it is very important for the policy holder to understand the terms and conditions of the policy purchased. According to the circular, policy documents can be full of legal complications, in such a situation it is important to have a document which explains the basic things about the policy in simple words and has as much essential information as possible. According to the circular, many complaints are being received due to lack of uniformity on policy related points between the insurance company and the policy holder. Keeping this in mind, revised CIS has been issued. In this, the insurer will have to tell the name of the insurance product/policy, policy number, type of insurance product/policy and the insured amount.
There will be information about this also
Apart from this, policyholders will also be informed about the expenses included in the policy, things outside its scope, waiting period, financial limit of coverage, claim process and complaint redressal mechanism. According to the circular, the insurance company, intermediary and agent will have to send the details of the revised CIC to all the policy holders. If policy holders wish, they can make CIC available in local language.
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