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IRDAI's latest step to make reading features of insurance policies like premiums, room rent, what types of diseases will be covered extremely easy to understand.
Reading insurance policies will become extremely easy. Whenever, you are in lookout for an insurance policy for yourself or for your family, you often come across complex jargons used in features of the insurance policies. But according to latest dictat of country’s nodal regulator of insurance industry, Insurance Regulatory and Development Authority of India (IRDAI), soon, insurers will have to mention features and various terms and conditions of the policies in simplest of the words which people use in their daily life. This will make features and terms and conditions of polices extremely easy to comprehend. It will help people make well informed decisions before buying any insurance policy.
This step of the IRDAI will make features of insurance polices regarding premiums, room rent, what types of diseases will be covered all such related information easy to understand.
IRDAI has set up a committee of 12 members to look after use of complex jargons emntioned in features of insurance policies. The committee will direct different insurance companies in the country to use simplified words in the features. The committee will study insurance policies that are already up for sale, find out difficult jargons used, and advise insurers how they can mention features of policies in simplest of the words.
The committee might also set a defined pattern which insurance companies have to follow while mentioning insurance policy features.
Irdai has set a goal of insurance for all by 2047.
“In this endeavour a committee with following members is constituted for simplification of policy wordings by using language understandable to policyholders,” the regulator’s statement mentioned.
According to Business Standard, the committee will be headed by L Viswanathan, a member of the Insurance Advisory Committee (IAC). Secretary Generals of the Life Insurance and General Insurance Council along with the president of the Insurance Brokers Association of India (IBAI) and the Principal Officer, State Bank of India (Corporate Agent) along with other senior members of the insurance industry will constitute the committee