IRDA recommends standard format for insurance policy

India Infoline News Service | Mumbai |

All insurers are advised to use a minimum font size for all forms that are made available to the policyholders

The Insurance Regulatory and Development Authority (IRDA) on Monday prescribed a standard format for life and non-life insurance policy to improve transparency and help people take informed decisions.
As policy servicing is one of the critical components of the insurance contracts, various service forms / formats that are made available to the policyholders during the course of policy service shall have clarity in terms of the print-size and shall facilitate complete understanding in terms of the language, the IRDA said in a notification.
Therefore, all the Insurers are advised to make available all the policy servicing forms also in languages recognized under the Constitution of India so as to meet the requirements of policyholders. The insurers may also make available these forms ‘in languages recognized under the Constitution of India’ on their website so that the forms may be accessed easily. It is envisaged that this initiative benefits in increasing informed decisions by policyholders / beneficiaries, it added.
There is a need for maintaining minimum / reasonable font size in respect of all the forms provided / used, both in respect of those forms provided / used in the grant of cover as also those forms provided / used during the course of policy servicing. It may be noted that an insignificant print used in the forms / formats may affect the decision taking ability of some of the prospects and policyholders.
Therefore, all insurance companies are advised to use a minimum print equivalent to font “Times New Roman - size no. 7”or above in respect of all the forms that are made available to the prospects and policyholders both during the course of granting the cover and subsequent policy servicing throughout the policy term.
The advice of maintaining minimum font size is also made applicable to policy contracts / documents issued to all policyholders.
 

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