Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular on 16th July 2023, on insurance claims relating to Floods in Himachal, Punjab, Haryana and Delhi regions. The recent floods that struck the northern regions of India, specifically Himachal, Punjab, Haryana, and Delhi, have caused widespread damage to homes, businesses, and infrastructure. As the affected communities struggle to recover from the devastating impact of these floods, it is crucial for General Insurers and Standalone Health Insurance Companies to mobilize all available resources to provide immediate service response and support to those in need.
To facilitate seamless claims processing and ensure timely assistance to affected policyholders, the Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular on 16th July 2023, directing insurers to take certain measures.
Firstly, IRDAI advises insurers to designate a Senior Executive in each affected State or Union Territory as the Nodal Claims Officer. This officer will oversee the claims response in their respective areas, ensuring streamlined communication and swift action. The appointment of the Nodal Officer should be promptly communicated to the Chief Secretary/Officer of the concerned State to establish a direct line of coordination.
Moreover, districts reporting a high number of claims should have a designated District Claims Service Head to manage the claims process efficiently at a local level. The contact information for these officers must be published on the insurer’s website and in the press to facilitate easy access for claimants seeking assistance.
Insurers are also required to establish 24×7 helplines to respond promptly and provide guidance to claimants. Additionally, extensive awareness campaigns should be launched to inform the affected communities about the measures being taken and how they can avail themselves of insurance benefits. To expedite the claims processing, special claims desks with dedicated Claims Settlement Teams should be set up at the district level. These teams will work diligently to ensure timely processing and settlement of claims, including the release of on-account interim payments.
The focus on prompt surveying and disbursing of claims is paramount. Insurance companies must ensure that all claims are surveyed immediately, and payments are disbursed without undue delays. To achieve this, insurers are encouraged to engage an adequate number of surveyors, even considering enlisting surveyors from neighbouring areas if needed. Emphasizing the importance of digital processes, insurers should encourage policyholders to utilize electronic communication for initiating claims and submitting relevant documents. This move will expedite the assessment of claims and facilitate quicker settlements.
Additionally, insurers should review and streamline the claims processing procedure, ensuring that only essential documentation required to substantiate the claim amount is requested. This will promote a more efficient and expeditious final settlement process.
