New Insurance Regulations Empower Policyholders with Cancellation Flexibility and Claim Clarity

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New Insurance Regulations Empower Policyholders with Cancellation Flexibility and Claim Clarity

A Summary

Policyholders can cancel their insurance policy at any time by notifying the insurer.

No reason for cancellation is required.

Insurers can only cancel policies due to established fraud, with a minimum seven-day notice.

For policies with terms up to one year, a proportionate premium refund is provided for the unexpired period if no claims have been made.

For policies exceeding one year, a refund is provided if risk coverage for those years hasn't commenced.

No claim should be denied due to missing documents.

All necessary documents should be requested during the underwriting process.

Only documents directly related to the claim settlement should be requested from the customer.

This insurance cannot be canceled by the insurer except in cases of double insurance or total loss.

Every retail customer should receive a CIS with each policy.

The CIS should explain the basic features of the policy, including coverage, exclusions, claim procedures, and more.

Motor insurance customers should be offered various options, including Pay as you Drive, Pay as you Go, Pay as you Use, and comprehensive cover with depreciation coverage.

The insured's declared value (IDV) of the vehicle will be considered the "sum insured" and fixed at the start of the policy period.

Losses exceeding Rs 50,000 for motor insurance and Rs 1,00,000 for other insurance must be surveyed by a registered surveyor and loss assessor.

These new regulations aim to empower policyholders with more control and transparency in their insurance journey.