Cyclone Yaas, Taukate: IRDAI issues guidelines for Life Insurance claim settlement of victims

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Updated: May 29, 2021 8:16 AM

Cyclones Tauktae and Yaas have caused the loss of human lives and belongings in several districts of Maharashtra, Gujarat, Odisha and West Bengal.

life insuranceRepresentative image

Cyclones Tauktae and Yaas have caused the loss of human lives and belongings in several districts of Maharashtra, Gujarat, Odisha and West Bengal. The Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines for insurers to facilitate quick and timely settlement of life insurance claims of victims affected by these recent cyclones.

The IRDAI has asked insurance companies to designate a senior level officer as the nodal officer in the affected states/Union territories for coordinating/expediting settlement of all claims reported. This office will have to immediately establish contact with the Chief Secretary or the officer concerned of the state/UT Governments and maintain close contact for subsequent follow up. The insurance regulate has also asked insurers to designate similar nodal officers for each of the affected districts to liaise with district administration, and intimate the contact details of all nodal officers designated to the Authority.

The life insurance companies have been asked to publicise the details of designated officers, special camps etc in the media and through state/UT Governments to facilitate the expeditious filing of claims, start 24×7 helplines, as required. Also, details of such publicity activities may be sent to the Authority immediately.

In a circular dated May 28, 2021, the IRDAI asked insurance companies to initiate immediate action to ensure that all reported claims are registered and eligible claims are settled promptly. Special attention may also be given to PMJJBY claims.

Simplified process

The IRDAI said that “a suitably simplified process/procedure including relaxations in the usual requirements wherever feasible may be considered to expedite claims settlement. With regard to claims involving loss of life, where difficulty is experienced in obtaining a death certificate due to non-recovery of body etc., the process followed in the case of Chennai floods in 2015 may be considered.”

In order to limit the fallout of the Corona Virus (COVID-19) pandemic and limiting direct/indirect social contact, all the Life Insurers have been advised to encourage and motivate their policyholders/claimants to adopt e-modes, wherever possible for correspondence while intimating the claim and the procedure for filing all the relevant documents.

For policyholders/claimants coming to office, the insurers should follow the government directions regarding maintaining social distancing and proper sanitization. “The staff must be duly sensitized to deal with policyholders/claimants with empathy and concern,” the circular said.

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