Master Circular on General Insurance Business repealing thirteen circulars

The Insurance Regulatory and Development Authority of India (IRDAI) has issued a comprehensive Master Circular on General Insurance Business repealing thirteen circulars. Key Highlights of the Master Circular:

1. Board’s oversight and Governance mechanism to be strengthened for various stages of insurance contract from product development, sales and servicing of the policies.
2. Suitability and affordability of customers to be considered in product development avoiding unnecessary and superfluous coverages.
3. Pricing of products to factor risk exposure, experience and expenses such that the premium rates are not excessive or inadequate or unfairly discriminatory.
4. Efforts to be made to incorporate in the product design proper management of underlying risks towards prevention and mitigation in the product design.
5. Steps to ensure no unprincipled rate cutting and improper underwriting practices.
6. Tech enabled processes providing end-to-end technology solutions to ensure seamless onboarding, policy servicing, renewal, claim settlement, and grievance redressal.
7. To ensure equitable and fair opportunities to the surveyors and loss assessors, work allocation to be done on a random basis in an automated manner without human intervention through a tech based solution to be developed by General Insurance Council in association with IIISLA.