The Insurance Regulatory and Development Authority of India (IRDAI), the country’s insurance regulator, on Monday directed insurance companies to ensure that all the main information about a policy is listed in a simple form on one page for the ease of the consumer, with effect from January 1, 2024.
According to the regulator, simple language will enable the consumer to understand and follow the policy documents thoroughly.
In a communication to insurance companies, the IRDAI said: “It is important for a policyholder to understand the terms and conditions of the policy that has been purchased. Since a policy document may be fraught with legalese, it is imperative to have a document that explains in simple words the basic features with regard to the policy and provides necessary information.”
The IRDAI directed insurance companies to mandatorily list out all the relevant policy details in a customer information sheet (CIS).
“It is observed that several complaints are still emanating as a result of the asymmetry of information between the insurer and the policyholder. In this backdrop, the existing customer information sheet has been improved and now seeks to convey basic information about the policy purchased in a manner that is easily understood,” the IRDAI added.
Currently, insurance companies provide all the relevant information on their policies in legal language and in a scattered form.
(This story will be updated shortly)