IRDAI Directs Insurers To Fast-Track Claim Settlement Process In States Affected By Cyclone Biparjoy

In a circular to CEOs of general insurance companies and standalone health insurance companies, the insurance regulator has advised them to expedite the settlement of claims

The circular emphasised the need for immediate surveys of all claims and timely disbursement of claim payments or on-account payments, ensuring adherence to the stipulated timeline.

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The Insurance Regulatory and Development Authority of India (IRDAI) has asked insurers to settle claims in the states affected by Cyclone Biparjoy in an expeditious manner. In a circular to CEOs of general insurance companies and standalone health insurance companies, the insurance regulator has advised them to expedite the settlement of claims in the states affected by cyclone Biparjoy.

The circular emphasised the need for immediate surveys of all claims and timely disbursement of claim payments or on-account payments, ensuring adherence to the stipulated timeline.

"The insurer shall encourage the policyholder to use electronic communication wherever possible for correspondence while initiating the claim and filing all the relevant documents. Efforts shall be made to ensure that digital processes are resorted to the extent possible for assessment of claims," it said.

Cyclone Biparjoy has reportedly caused the loss of property (homes and businesses) and infrastructure in various states. The regulator has asked the insurers to mobilise all resources to ensure immediate service response, including engaging the services of investigators, surveyors, and loss adjustors for quick settlement of claims arising out of the havoc created by the cyclone.

The insurers have been advised to communicate the nomination of a senior executive in each affected state/UT to the Chief Secretary/Officer concerned of the state immediately.

Insurers will be responding/assisting the claimants through their 24x7 helplines, and special claims desks at the district level with delegated claims settlement teams for speedy processing and settlement of claims, it said. Adding that districts reporting large numbers of claims may be overseen by a designated District Claims Service Head.

Insurers have been advised to settle claim payments/on-account payments at the earliest and also encourage policyholders to use electronic communication wherever possible for correspondence, it said.

Cyclone Biparjoy struck the coast of Kutch on Thursday night, bringing winds with speeds of 115-125 km/hour and resulting in property and infrastructure damage in the affected states.