Irda eases norms for settlement

Mumbai, Aug 4 | Updated: Aug 5 2005, 05:39am hrs
In view of the emergency situation arising out of the Mumbai floods, the Insurance Regulatory & Development Authority (Irda) has relaxed certain norms to facilitate speedy settlement of claims, estimated at over Rs 2,000 crore, filed by policyholders in rain-ravaged Maharashtra and Gujarat, including raising the slab of losses that requires assessment.

Irda chairman SCS Rao, in a circular, said the limit of losses that requires to be surveyed before settling claims had been raised to Rs 50,000 from Rs 20,000. The provision, though, is applicable for the next two months only. He also said that insurers may use their in-house surveyors for assessing losses amounting to Rs 50,000. This special dispensation is given to insurer to ensure expeditious disposal of claims and for mitigating the hardships to policyholders, IRDA said.

The relaxation of rules has been exercised as per the provisions in section 64um(2) of the Insurance Act of 1938.

Looking into the gravity of problem, Irda asked insurers to speed up the settlement of claims and submit weekly report on the progress.