Insurance companies will not be able to reject claims on the pretext of lack of paper, IRDAI circular issued

The Insurance Regulatory and Development Authority of India (IRDAI) on Tuesday said general insurance companies cannot reject claims for lack of documents. The circular issued in this regard, which is part of the reforms in general insurance business, will usher in a new era for simple and customer centric insurance solutions. The comprehensive master circular on general insurance business also supersedes 13 other circulars. IRDAI said it has now become possible to provide easy-to-understand insurance products to meet the individual needs of customers, give customers ample choice and enhance their insurance experience.

No claim will be rejected

The circular states that no claim will be rejected due to lack of documents. Necessary documents should be asked for at the time of acceptance of the proposal. Accordingly, customers may be asked to submit only those documents which are necessary and related to claim settlement. Furthermore, retail customers can cancel the policy at any time by informing the insurer, whereas the insurer can cancel the policy only on the basis of fraud being proven.