Money & Banking

Amphan cyclone: IRDAI asks insurers to hasten settlement of claims

Our Bureau Hyderabad | Updated on May 25, 2020

The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurers to hasten settlement of claims pertaining to the cyclone Amphan.

In a circular, it said there were reports of loss of human lives and loss of belongings in the cyclone-affected districts, primarily in West Bengal and Odisha.

It also wreaked havoc in Odisha, damaging power and telecom infrastructure.

“Initiate immediate action to ensure that all reported claims are registered and eligible claims are settled expeditiously,” the regulator said.

As per the circular, insurers have to nominate a senior officer to act as a nodal officer in the State concerned to liaise with the State administration to facilitate identification of policyholders among the deceased due to the cyclone.

With regard to claims involving loss of life, where difficulty is experienced in obtaining a death certificate due to non-recovery of body, it asked the insurers to follow the process as in the case of the Chennai floods in 2015.

“A suitably simplified process/procedure including relaxations in the usual requirements wherever feasible may be considered to expedite claims settlement,” the circular said.

With a view to adhering to the Covid-19 pandemic and limiting direct/indirect social contact, insurers have been advised to encourage their policyholders/claimants to adopt e-modes, wherever possible for correspondence.

The staff must be duly sensitised to deal with policyholders/claimants with empathy and concern, it added.

The insurance companies have also been asked to file State-wise progress reports on claims settled on weekly basis.

Published on May 25, 2020

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