Insurers to pay out dues to policyholders on time: IRDA

The circular comes into force from April 1, 2014

February 20, 2014 9:08 IST | India Infoline News Service
The IRDA (Insurance Regulatory and Development Authority) on 13th February has asked insurers to take steps so as ensure timely payout of dues to policyholders, amid a rising trend in amounts lying unclaimed with companies.
In 2012-13, about Rs 4,865 crore remained unclaimed with insurance companies. The same was at Rs 3,037.46 crore in 2011-12, Rs 1,945.93 crore in 2010-11 and Rs 1,372.64 crore in 2009-10, the Insurance Regulatory and Development Authority (IRDA) said in a circular.
"While unclaimed amount is not uncommon in insurance sector, a steep increase in the unclaimed amount is a cause of concern...The Audit Committee shall have oversight on unclaimed amounts. The Committee shall also oversee compliance of the provisions," it said.
"In order to minimise the unclaimed amount, insurer shall endeavour to keep the policyholder and beneficiary informed about any updates, changes and maturity details by SMS alerts or e-mail or any other mode as may be specified by the Authority on regular basis," it said.
It also directed the insurers to reduce unclaimed amount by identifying the insured and creating awareness.
The circular comes into force from April 1, 2014, IRDA said.

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