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IRDAI issues guidelines for insurers for settlement of claims of flood victims this month
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The Insurance Regulatory and Developmneighbouringty (IRDAI) has issued guidelines for settlement of claims of victims in recent floods in Telangana Andhra Pradesh and Telangana. In a circular, IRDAI said, “As you are aware, the recent floods (October 2020) have caused immense loss to property in parts of Telangana, Andhra Pradesh and neighboring States. General Insurers may have issued policies for the protection of lives and property located in the affected areas.”

“There is an urgent need for the insurance industry to take immediate steps to mitigate the hardships of the affected insured population by ensuring immediate registration and settlement of eligible claims.”

The regulator has made the recommendations to the insurers to take immediate steps for quick registration and disposal of claims on the following lines: –

The regulator has asked insurers to nominate a senior officer at the company level. He/she would act as a Nodal Officer for the affected states. The Nodal Officer would be coordinating the receipt, processing, and settlement of all eligible claims. IRDAI said that the Nodal officer should contact Chief Secretary/Officer concerned of the state immediately and be in regular contact thereafter.

IRDAI said that district-level Nodal officer may be appointed in each affected district to liaise with DM/District Administration.

The regulator has asked insurers that the contact particulars of the Nodal Officer may also be conveyed to and the same may be given due publicity in the press and through State Governments.

Insurers may start 24/7 helplines.

In case of death claims and death certificate is difficult to obtain on account of non-recovery of body etc, the process followed in the case of Jammu & Kashmir floods (Notification of Ministry of Home Affairs, GoI, No. 1/12/2014- Vs (CRS) Dated 12.09.2014- which was also followed when recent floods and cyclone occurred), may be considered.

The regulator has asked insurers to ensured that all claims are surveyed immediately and claim payments/on account payments are disbursed at the earliest and in any case not exceeding the stipulated time-line.

The insurers have been asked to engage an adequate number of surveyors.

Source : Live Mint back