Insurance Regulator and Development Authority of India (IRDAI) has made KYC norms obligatory for purchasing health insurance, auto, home, etc. for buying all new insurance policies.
The norm stated is applied to all the other types of insurance – life, general and health insurance. Up to this point, sharing KYC document was a optional choice at the time of buying the policy. Although, from this day forward, the insurers will have to get KYC documents from their customers.
As per the new rule, the claim process will get faster and more smooth and absolute as the insurers will have a comprehensive profile of purchasers. For insurance firms, the KYC details helps to make a better accuracy of risk evaluation and pricing, this will also lessen the risks of defrauding claims.
The insurance controller has also informed both life and non- life insurance firm to first resolve Covid-19 pandemic related claims and lessen the paper work, the news is reported by the news agency PTI. The controller also informed the insurers to make sure that empaneled hospitals are forbidden for receiving deposit for Covid hospitalization, including, a few hospitals indulged in demanding more deposit for Covid treatment during the corona’s first and second wave in spite of having moneyless policy.
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The insurers need to make a war space for Covid-19 related help. Every stakeholders have the strength to cope up with the worst case scenario, the insurance controller asked the industry asking that the regular data should be given and reported in a format form to avoid any disparity.
More than 2.25 lakh claims of Covid related issuers were resolved by insurance companies up to March 2022, as per the annual report presented by Insurance Regulatory and Development Authority of India (IRDAI), a statutory body made under an Act of parliament to supervise and enhance the Insurance sector in India.
The changes are made obligatory for purchasing new health insurance, motor, and travel and home insurance policies from thisc1 st January, 2023.
All Policyholders need to know this
Sharing KYC is an optional choice made by the insurers while buying a new general insurance policy, it becomes necessary for the insurers to collect KYC documents while buying a new non- life insurance policy.
