Insurers should mention exclusions in policies: Irdai

Policy holders should be made fully aware of the benefits of the products being sold to them

Insurance Regulatory and Development Authority of India (IRDAI) has mandated all insurers to classify all the exclusions related to a policy, in order to prevent mis-selling of these products. 

Also, the insurance regulator warned that if a claim settlement is not within the stipulated time, insurers will be liable to pay penal charges of 2 per cent above bank rates to the policy holder.

Standard exclusion applicable in all policies, exclusion specific to the policy that cannot be waived off, and specific exclusions which can be waived off by paying additional premiums should all be made aware to the policyholders upfront, the