{"id":3025,"date":"2021-03-06T05:56:43","date_gmt":"2021-03-06T05:56:43","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3025"},"modified":"2021-03-06T05:59:02","modified_gmt":"2021-03-06T05:59:02","slug":"irdai-mandates-communication-of-basic-information-to-policyholders","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/irdai-mandates-communication-of-basic-information-to-policyholders\/","title":{"rendered":"IRDAI Mandates Communication of Basic Information to Policyholders"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The IRDAI (Insurance Regulatory Development\nAuthority of India), by way of the Notification No IRDAI\/ HLT\/ REG\/ CIR\/ 038\/\n03\/ 2021, issued on 01.03.2021, has notified that it is mandatory for all the\nGeneral and Health Insurers to do the communication of basic information to\npolicyholders.<\/p>\n\n\n\n<p>Further, it shall be noted that by way of this\nnotification, IRDAI has drawn attention towards Rule 12 of IRDAI (Protection of\nPolicyholders Interest) Regulations 2017, which deals with the providing of\nminimum information concerning the health insurance policy to the policyholder.\nFurthermore, every insurance company needs to adhere to these instructions by\n01.06.2021.<\/p>\n\n\n\n<p>In this learning blog, we will cover the concept of\nIRDAI, together with the provisions concerning the communication of basic\ninformation to Policyholders.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54e62591590\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54e62591590\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-mandates-communication-of-basic-information-to-policyholders\/#Concept_of_IRDAI\" title=\"Concept of IRDAI\">Concept of IRDAI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-mandates-communication-of-basic-information-to-policyholders\/#Why_has_IRDAI_mandated_the_Communication_of_Basic_Information_to_Policyholders\" title=\"Why has IRDAI mandated the Communication of Basic Information to\nPolicyholders?\">Why has IRDAI mandated the Communication of Basic Information to\nPolicyholders?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-mandates-communication-of-basic-information-to-policyholders\/#Who_are_all_exempted_from_the_Communication_of_Basic_Information_to_Policyholders\" title=\"Who are all exempted from the Communication of Basic Information to\nPolicyholders?\">Who are all exempted from the Communication of Basic Information to\nPolicyholders?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-mandates-communication-of-basic-information-to-policyholders\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/irdai-mandates-communication-of-basic-information-to-policyholders\/#Official_Copy_of_the_Circular_issued_by_IRDAI\" title=\"Official Copy of the Circular issued by IRDAI\">Official Copy of the Circular issued by IRDAI<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_IRDAI\"><\/span>Concept of IRDAI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The IRDAI or Insurance Regulatory and Development Authority of India means an authority that works as the regulator of the insurance sector and monitors the working and operations of the General and <a href=\"https:\/\/en.wikipedia.org\/wiki\/List_of_insurance_companies_in_India\">Life Insurance Companies<\/a>.<\/p>\n\n\n\n<p>Further, the main objective of IRDAI is to safeguard\nthe interest of policyholders and to supervise the insurance sector.<\/p>\n\n\n\n<p>Also, it shall be noted that IRDAI is responsible for ensuring fairness, financial soundness, and transparency in the insurance sector as well.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/irdai-notifies-the-insurance-ombudsman-amendment-rules-2021\/\">IRDAI Notifies the Insurance Ombudsman (Amendment) Rules 2021<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_has_IRDAI_mandated_the_Communication_of_Basic_Information_to_Policyholders\"><\/span>Why has IRDAI mandated the Communication of Basic Information to\nPolicyholders?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Based on the provisions of Rule 12 of IRDAI\n(Protection of Policyholders) Regulations 2017, every insurance company must\nprovide minimum information concerning the health insurance policy to the\npolicyholder.<\/p>\n\n\n\n<p>Further, to ensure the smooth flow of relevant information,\nit is obligatory for every insurance company to periodically notify the\npolicyholders regarding the key details of the health insurance coverage issued\nto them.<\/p>\n\n\n\n<ul><li>All the General and Health Insurers need to communicate the information as follows:<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Name-of-the-Product-and-Policy-Number-1024x543.png\" alt=\"All the General and Health Insurers need to communicate the information\" class=\"wp-image-3028\" width=\"727\" height=\"385\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Name-of-the-Product-and-Policy-Number-1024x543.png 1024w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Name-of-the-Product-and-Policy-Number-300x159.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Name-of-the-Product-and-Policy-Number-768x408.png 768w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Name-of-the-Product-and-Policy-Number.png 1500w\" sizes=\"(max-width: 727px) 100vw, 727px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Name of the Product and Policy Number;<\/li><li>The Extent of Coverage available through Sum Insured and Cumulative Bonus;<\/li><li>Total Number of People Insured;<\/li><li>Period of Policy;<\/li><li>Name and Amount of Claim Settlement;<\/li><li>Balance Sum Insured and the available Accrued Cumulative Bonus;<\/li><li>Renewal Date and Frequency of Premium Payment;<\/li><li>Amount Due for Payment on Renewal;<\/li><li>Period of Grace (5 days from the date of renewal);<\/li><li>Contact details of the Customer Support Service of Insurer;<\/li><\/ol>\n\n\n\n<ul><li>The insurance company need to communicate the information mentioned above twice a year, i.e., on half yearly basis. It shall be noted that in the case of Renewal, such communication must be made one month before expiry. However, in the case of multiyear policy, such information can be shared within six months from the date of issuance;<\/li><li>Further, in the case of event settlement, the insurance company needs to communicate the information concerning sum assured and available cumulative bonus to the policyholders within a period of 15 days form the claim settlement;<\/li><li>Also, it shall be noted that an insurance company can use any of the modes available for making communication and needs to refrain from using long, complex, unintelligible, and unnecessary information.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_are_all_exempted_from_the_Communication_of_Basic_Information_to_Policyholders\"><\/span>Who are all exempted from the Communication of Basic Information to\nPolicyholders?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All the companies except the following are exempted\nfrom the communication of basic information to policyholders:<\/p>\n\n\n\n<ul><li>Export Credit\nGuarantee Corporation of India;<\/li><li>Agriculture\nInsurance Company;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, to infuse transparency, fairness, and financial soundness in the insurance sector, IRDAI has made the communication of basic information mandatory for every General and Life Insurance Company. However, it shall be noted that the provisions of this circular will not apply to the Agriculture Insurance Company (AIC) and Export Credit Guarantee Corporation of India (ECGC).<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/what-role-does-irda-play-in-the-development-of-insurance-sector\/\">What Role Does IRDA Play in the Development of Insurance Sector?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_Copy_of_the_Circular_issued_by_IRDAI\"><\/span>Official Copy of the Circular issued by IRDAI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/IRDAI-Mandates-Communication-of-Basic-Information-to-Policyholders.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">IRDAI-Mandates-Communication-of-Basic-Information-to-Policyholders<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IRDAI (Insurance Regulatory Development Authority of India), by way of the Notification No IRDAI\/ HLT\/ REG\/ CIR\/ 038\/ 03\/ 2021, issued on 01.03.2021, has notified that it is mandatory for all the General and Health Insurers to do the communication of basic information to policyholders. Further, it shall be noted that by way of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[43,50],"tags":[464],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3025"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3025"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3025\/revisions"}],"predecessor-version":[{"id":3033,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3025\/revisions\/3033"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3027"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}