From January 1, 2024, insurance companies are required to provide policyholders with information in a standardized format regarding basic aspects of a policy, such as the insured amount and covered expenses. The Insurance Regulatory and Development Authority of India (IRDAI) has amended the existing Customer Information Sheet (CIS) to make it easier for policyholders to understand these fundamental aspects of the purchased policy.
The insurance regulator has issued a circular to all insurance companies in this regard, stating that the amended CIS will be effective from January 1, 2024.
Policy Documents Should Be Easily Understandable – IRDAI: IRDAI emphasizes that understanding the terms and conditions of a purchased policy is crucial for policyholders. According to this circular, “A policy document can be legally complex, and therefore it should be a document that explains the fundamental points of the policy in simple language and is filled with essential information.”
Still Dealing with Several Complaints in the Insurance Industry: According to the circular, there are still several complaints arising from discrepancies between insurance companies and policyholders about the terms of the policy. Taking this into account, the amended CIS has been released. It must contain information about the name of the insurance product/policy, policy number, type of insurance product/policy, and the insured amount.
Apart from the expenses included in the policy, policyholders are also required to provide information about expenses beyond the scope of the policy, waiting period, coverage limits, claim process, and dispute resolution mechanism.
Insurance Companies, Intermediaries, and Agents Must Provide the Amended CIS to All Policyholders: As per the circular, insurance companies, intermediaries, and agents must send the amended CIS to all policyholders. If a policyholder wishes, the CIS should also be made available in the local language.