Insurance claim: Cyclone Biparjoy: Insurance claim payments to be disbursed at the earliest, says Irdai

Insurance claim: Cyclone Biparjoy: Insurance claim payments to be disbursed at the earliest, says Irdai

The Insurance Regulatory and Development Authority of India (IRDAI) has asked life insurers to take necessary steps for quick claim settlement of insurance claims in all states affected by cyclone Biparjoy.

Cyclone Biparjoy is predicted to do significant damage to infrastructure and property (including houses and businesses) throughout a number of states.

Irdai has urged that general insurers and standalone health insurance companies use all available resources to assure prompt service, including by using external investigators, surveyors, and loss adjustors as follows, according to an Irdai press release dated June 16, 2023.

Here is what the IRDAI press release stated.

Nominate a Senior Executive
Please nominate a Senior Executive in each affected State / UT to act as the Nodal Claims Officer overseeing the claims response.

Designated head
Districts reporting large numbers of claims may be overseen by a designated District Claims Service Head.Publicity on website
The contact particulars of the State / District heads should be published on the Insurer website and necessary publicity may be also given in the press.

Publish 24×7 helplines to respond
All Insurers should also activate, publish 24×7 helplines to respond / assist Claimants and launch extensive awareness campaign duly highlighting the measures taken.

Special claims desks
It is advised that special claims desks at the district level with sufficient delegated claims settlement teams be established in the affected areas to speed up the processing of claims and settlements, including the delivery of on-account interim payments to aid in the early reinstatement of real estate and commercial enterprises.

Payments are disbursed at the earliest
It needs to be ensured that all claims are surveyed immediately and claim payments/ on account payments are disbursed at the earliest and in any case not exceeding the stipulated timeline.

Encourage to use electronic communication
When making a claim and starting correspondence, the insurer will encourage the policyholder to use electronic communication wherever possible. To the greatest extent practicable, efforts must be undertaken to evaluate claims using digital procedures.

Streamline processing of claims
Insurers are also expected to review and streamline processing of claims by ensuring only such documentation necessary to substantiate claim quantums, to ensure expeditious final settlement.

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Author: Shirley