Starting next year, policyholders can expect these changes in their insurance policies

When purchasing insurance policies, customers tend to face confusion in understanding the features and other terms. As a result, policyholders don’t read the entire document because it’s too difficult for the guy next door or the girl next door.

This is recognized by the insurance regulator IRDAI and requires insurance companies to provide all the essential features of an insurance contract in simple terms in a predefined format in the Customer Information Sheet (CIS). I gave the order to enumerate.

The revised format of the CIS will come into effect from January 1 next year.

The regulator instructed insurers to submit a concise and up-to-date CIS containing all relevant information about the insurance contract.

In fact, many complaints are related to information asymmetry between insurance companies and policyholders.

The latest set of rules was born out of the need to promote transparency and increase policyholder awareness.

The customer information sheet includes the name of the insurance product, policy number, type of insurance product, amount insured, scope of insurance coverage, exclusions, waiting period, financial limits of coverage, claims procedure, insurance services, grievances, Something to remember, an obligation.

Insurers are also supposed to record the details of the CIS and confirm with the policyholder that they have received it.

Health insurance

The Health Insurance CIS is designed to provide policyholders with all the important information about their health insurance contracts in simple language. This includes:

A. Policy name and type

B. Coverage Details

C. Waiting period

D. Limits and sublimits

E. All Exclusions

F. Concepts such as Freelook Cancellation, Migration, Portability, and Moratorium Periods

G. Information on insurance claim procedures

H. Contact Details/Web Link for Complaints/Complaints

“This move is expected to ensure policyholders are well-informed, reduce disputes and delays, and provide a seamless health insurance experience for policyholders,” the IRDAI statement said. There is.

Additionally, policyholders also have an obligation to transparently and fairly disclose important information about their health, as non-disclosure may affect the settlement of claims.