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:
- Board’s oversight and Governance mechanism to be strengthened for various stages of insurance contract from product development, sales and servicing of the policies.
- Suitability and affordability of customers to be considered in product development avoiding unnecessary and superfluous coverages.
- Pricing of products to factor risk exposure, experience and expenses such that the premium rates are not excessive or inadequate or unfairly discriminatory.
- Efforts to be made to incorporate in the product design proper management of underlying risks towards prevention and mitigation in the product design.
- Steps to ensure no unprincipled rate cutting and improper underwriting practices.
- Tech enabled processes providing end-to-end technology solutions to ensure seamless onboarding, policy servicing, renewal, claim settlement, and grievance redressal.
- 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.
