Irdai directs insurance companies to settle HP flood claims on urgent basis

The Insurance Regulatory and Development Authority of India (IRDAI) issued instructions on Friday to all insurance companies to settle the claims of Himachal Pradesh flood victims without delay.

The IRDAI circular stated, “The Insurance Sector Regulator has issued instructions to all General Insurers and Standalone Health Insurance to mobilise all resources to ensure immediate service response. This includes engaging the services of Surveyors, Loss Adjustors and Investigators for the quick settlement of claims arising out of the havoc created by the floods.”

The relentless floods and landslides that have wreaked havoc in Himachal Pradesh caused widespread loss to property, including homes and businesses, as well as infrastructure.

The regulator has directed insurance companies to promptly communicate the nomination of a Senior Executive to the Chief Secretary. Additionally, districts that have reported large numbers of claims will be overseen by a designated District Claims Service Head. Insurers have been instructed to give wide publicity to the contact details of the nominated officers, both on their websites and in the media.

The guidance also included advice for insurers to set up 24-hour helplines and special claims desks at the district level with delegated Claims Settlement Authorities to enable speedy processing and settlement of claims.

Companies are expected to release claims payments or on-account payments at the earliest opportunity. They are also encouraged to urge policyholders to use electronic communication wherever possible for correspondence, the circular concluded.