Insurance claims relating to floods in Andhra Pradesh and Telangana: IRDAI Circular

The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular directing all insurance companies, including life and standalone health insurers, to expedite claims related to the recent floods in Andhra Pradesh and Telangana during August-September 2024. Insurers are urged to mobilize resources, including surveyors, loss adjustors, and investigators, to ensure prompt response and settlement of claims. A senior executive must be appointed as a Nodal Claims Officer to oversee operations, and districts with high claim volumes should have designated District Claims Service Heads. Contact details of these officers must be published on the insurers’ websites and promoted through media outlets. Insurers are also asked to activate 24×7 helplines and establish special claims desks in affected areas to facilitate quick settlements, including on-account interim payments. The IRDAI emphasizes the use of electronic communication for claim submissions and encourages insurers to minimize documentation requirements for faster processing. In cases of death claims where a death certificate cannot be obtained, insurers are advised to consider claims based on government-published information on the deceased. Weekly updates on claim progress are to be submitted to the IRDAI for a month. The circular aims to ensure efficient handling of insurance claims in the flood-affected regions.
Insurance Regulatory and Development Authority of India
Circular no: IRDAI/ NL/ CI R/ MISC/ 116/ 9/ 2024 Dated: 4th September, 2024
All CEOs /CMDs of all Insurance Companies, including Life and Stand-Alone Health Insurance Companies
Re: Insurance claims relating to floods in Andhra Pradesh and Telangana
The floods in Andhra Pradesh and Telangana (August/ September, 2024) are reported to have caused widespread loss to human lives, property (homes and businesses) and infrastructure.
2. All Insurance Companies are advised to mobilise all resources to ensure immediate service response including outsourced functions such as Surveyors, Loss Adjustors and Investigators. Specifically:
a. Nominate a Senior Executive to act as the Nodal Claims Officer overseeing the claims response. The Nodal Officer appointment should be communicated to the Chief Secretary concerned of the State immediately.
b. Districts reporting large numbers of claims may be overseen by a designated District Claims Service Head.
c. The contact particulars of the State / District heads should be published on the Insurer website and necessary publicity may be also given in the press.
d. All Insurers should also activate, publish 24×7 helplines to respond / assist Claimants and launch extensive awareness campaign duly highlighting the measures taken.
e. Special Claims Desks at District level with adequate delegated Claims Settlement Authorities are recommended to be set up for affected areas to facilitate speedy processing of claims and settlements including release of on-account interim payments to assist early reinstatement of property/ businesses.
f. It needs to be ensured that all claims are surveyed immediately and claim payments/ on account payments are disbursed at the earliest.
g. Adequate number of Surveyors and Loss Adjustors be immediately engaged and if needed, resources from neighbouring States may be also deployed.
h. Insurers shall encourage Policyholders to use electronic communication wherever possible for correspondence while initiating the claim and filing all the relevant documents. Efforts shall be made to ensure that digital processes are resorted to the extent possible for assessment of claims.
i. Insurers are also expected to review and streamline processing of claims by ensuring only such documentation necessary to substantiate claim quantum. to ensure expeditious final settlement.
j. With regard to claims involving loss of life, where difficulty is experienced in obtaining a death certificate due to non-recovery of body etc., if the details of the Insured matches with the details of the deceased published by State/Central Government or appropriate/Govt. authorities., the claim may be considered without insisting for death certificate.
3. All Insurers (including Life and Standalone Health Insurers) are advised to submit information related to the claims to the IRDAI in the format attached on a weekly basis at [email protected] in by General and Health Insurers and at by Life Insurers, for a month.
Randip Singh JagpalExecutive Director (Non-Life)