A new circular from IRDA has made Insurance customers and their nominees free from any inordinate delays in their claim settlement. This circular will change the current opaque scenario from 1st April, 2014. For the first time, the figures of unclaimed insurance have proceeded in the public domain. The regulator in the circular said that unclaimed amount is common in insurance sector and a sharp increase in it has become a cause of concern. Increased from Rs 3,037 crore in 2011-1 to Rs 4,865 in 2012-13, the unclaimed amount has swelled by 60%. The insurance proceeds that fail to reach policyholders or their nominees on time because of various reasons are the result of this unclaimed money.
Now, from April, a policyholder or nominee will get the right to access information about the policy. As per the instructions given by IRDA, insurance companies are asked to showcase the details like policyholder's name & address, maturity proceeds, death benefit and premium due for refund and other related on their websites.
If you have a cover then only you can run a check and get the details of your policy. Unfettered access may not be allowed to the database of insurers to prevent frauds.
Misplacement of original policy documents could result to the nominees not having access to the relevant documents in need. Once insurance companies start displaying details on their website, these problems will be solved.
The certified financial planner Harshvardhan Roongta, CEO, Roongta Securities, said that the nominees need to intimate the insurance companies regarding the policyholder's demise, specifiying the reason of the death. After that, the insurer will send acroos the claim from relevant to the reason of death. When the nominees furnish the documents asked for in the form, then only the forgetclaim processing will begin. Insurance companies are also asked by “Benefits of Direct Transfer Irda” for the transferring of proceeds from policies to the registered bank accounts of policyholders & nominees.
The insurers will seek the details at the time of buying the policy for new policies and in case of non-life policies, the details will be given at the time of renewals or claims. This move will accelerate the pace of claim disbursal and will also make it more efficient.