Context:
The Insurance Regulatory and Development Authority of India (IRDAI) has conducted routine inspections of several health and general insurance companies to review their adherence to regulatory norms, especially provisions under the new Health Insurance Master Circular issued earlier.
Concerns Highlighted
- Implementation issues with the Health Insurance Master Circular.
- Claims settlement practices raised red flags.
- Specific procedural lapses in:
- Customer Information Sheet (CIS) design and complexity.
- Representation on Claims Review Committees.
- Portability data submission delays to the Insurance Information Bureau (IIB).
Regulatory Background
- The Health Insurance Master Circular was issued by IRDAI to streamline and enhance transparency in policy terms, claims processes, portability, and disclosures.
- IRDAI aims to ensure consumer-friendly practices and better compliance across the sector.
Implications
- Reinforces IRDAI’s proactive regulatory role in promoting accountability and uniform standards.
- Prompts insurers to rectify procedural inefficiencies swiftly.
- May influence broader industry-wide reforms in claims transparency and data submission norms.
