Starting January 1, 2024, insurance companies in India will have to make it easier for policyholders to understand their insurance policies.
The Insurance Regulatory and Development Authority of India (IRDAI) has introduced changes to the Customer Information Sheet (CIS) to ensure that policyholders have access to straightforward information about their policies.
In a circular sent to all insurance companies, the IRDAI emphasized the importance of policyholders comprehending their insurance terms and conditions.
They stressed that policy documents often contain complex legal jargon, so it’s crucial to have a document that simplifies the policy’s key points and provides vital information.
The move comes in response to ongoing complaints within the insurance industry, where disputes arise between policyholders and insurance companies due to misunderstandings about policy-related matters.
The revised CIS is designed to address this issue. It obliges insurers to provide information such as the insurance product or policy name, policy number, the type of insurance, and the sum insured.
Additionally, policyholders will receive information on policy expenses, exclusions, waiting periods, coverage limits, the claims process, and grievance resolution procedures.
The circular also requires insurance companies, intermediaries, and agents to share the updated CIS with policyholders.
Furthermore, if a policyholder prefers, the CIS will be available in their local language.
