• UGI USER
  • Apr 15, 2024
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POLICY WORDING CHANGE EXPECTED TO BENEFIT INSURERS, INDIA INC, AND CUSTOMERS.

Why in the news?

IRDAI permits general insurers to modify policy wordings, excluding motor third parties, aiming for customization and customer-centricity.

source:scribd

About the IRDAI’s Policy Change:

  • The Insurance Regulatory and Development Authority of India (IRDAI) allows general insurers to alter wordings in corporate policy documents, excluding motor third parties.
  • Changes include terms, conditions, clauses, warranties, policy, and endorsement wordings for classes like Fire, Engineering, Motor, and Workmen’s Compensation.
  • The move aims to customise policy wordings based on risk profiles, promote product innovation, and meet customer needs.
About The Insurance Regulatory and Development Authority of India (IRDAI):

  • Established under the IRDA Act 1999.
  • Apex body regulating the insurance sector in India.
  • Objective: Protect policyholders’ interests and ensure orderly growth.

Composition:

  • Consists of a Chairman and 10 members.
  • Members appointed by the Government of India.
  • Headquartered in Hyderabad, under the Ministry of Finance.

Functions:

  • Fair regulation and financial soundness.
  • Periodic framing of regulations.
  • Registering and regulating insurance companies.
  • Protecting policyholders’ interests.

About IRDAI Vision 2047:

Objective:

  • Ensure insurance coverage for every citizen by 2047.
  • Enhance insurance solutions for enterprises.
  • Make the Indian insurance sector globally competitive.

Pillars:

  • Focus on insurance customers (policyholders).
  • Strengthen insurance providers (insurers).
  • Empower insurance distributors (intermediaries).

source:https://indianexpress.com/article/insurance/insurers-customers-to-benefit-from-change-in-policy-wordings-9270269/#:~:text=Insurers%20can%20now%20change%20terms,notification%20issued%20by%20the%20government