IRDAI issues guidelines to insurance companies to settle flood claims in rain-affected states

Telangana and Andhra Pradesh have been hit hard by heavy rains over the past few days. Hundreds of colonies were submerged along with heavy crop damage, property and loss of life were reported. In this context, the Insurance Regulator and Development Authority of India (IRDAI) on Wednesday issued guidelines to insurance companies. "The insurance industry needs to take immediate action to alleviate the plight of insured victims through the immediate registration of eligible claims," said the IRDAI.

The insurance regulator said the procedure followed in the case of Jammu and Kashmir floods could also be considered where it is difficult to get a death certificate due to non-recovery of the bodies of those lost in the floods. According to a new circular, the IRDAI has directed the state and district level to nominate senior officials to act as nodal officers to take immediate steps for disposal of flood claims

The regulatory has issued instructions to insurance companies to coordinate with eligible claims and processing solution for the registration. The nodal authorities were asked to publicize the details of the claims in the press. It said it would engage a sufficient number of surveyors to resolve insurance claims and make payments within the stipulated time frame. The IRDAI has advised that all the insurance companies should encourage the policyholders to go with electronic communication in view of coronavirus.