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Tuesday, March 4, 2014

IRDA prescribes standard format for insurance policy

 Insurance regulator IRDA today prescribed a standard format for life and non-life insurance policy to improve transparency and help people take informed decisions. 

"...all the insurers are advised to make available all the policy servicing forms also in languages recognized under the Constitution of India so as to meet the requirements of policyholders," IRDA said in a notification. 

The insurers may also make available these forms in languages recognised under the Constitution of India on their website so that the forms may be accessed easily, it said. 

It is envisaged that this initiative benefits in increasing informed decisions by policyholders or beneficiaries, it added. 

The regulator also said that all insurers also to note that there is a need for maintaining minimum or reasonable font size in respect of all the forms provided or used. 

"It may be noted that an insignificant print used in the forms may affect the decision taking ability of some of the prospects and policyholders," it said. 

"Therefore, all insurance companies are advised to use a minimum print equivalent to font 'Times New Roman-size no 7' or above in respect of all the forms that are made available to the prospects and policyholders both during the course of granting the cover and subsequent policy servicing throughout the policy term," it said. 

The advice of maintaining minimum font size is also made applicable to policy contracts issued to all policyholders, it added.

Source:-The Economic Times

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