Introduction: The Insurance Regulatory and Development Authority of India (IRDAI) has issued a crucial circular, IRDAI/NL/CIR/MISC/216/12/2023, dated 18th December 2023, addressing General Insurance Companies CEOs/CMDs. This communication follows a previous circular, IRDAI/NL/CIR/MISC/215/12/2023, dated 9th December 2023, urging insurers to expedite claims arising from Cyclone Michaung and subsequent heavy rains/floods.
1. Background: The circular builds upon the earlier directive, emphasizing the urgency of settling insurance claims linked to Cyclone Michaung and the ensuing natural disasters.
2. Special Dispensation: In a proactive move, IRDAI exercises its powers under Section 64UM (4) of the Insurance Act, 1938. The Authority grants special dispensation to General Insurers, modifying the limits for the appointment of Surveyors and Loss Assessors specified in Regulation 12(2) of the IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015.
3. Increased Limits:
4. Temporal Applicability: The special dispensation is explicitly applicable to claims arising from Cyclone Michaung and subsequent heavy rains/floods. It remains in effect for a defined period of two months from the circular’s issuance date.
Conclusion: In conclusion, the IRDAI’s latest circular, with the signature of Executive Director (NL) Randip Singh Jagpal, seeks to streamline and hasten the claims settlement process for General Insurers in the aftermath of Cyclone Michaung. The increased limits for surveyors and assessors reflect a pragmatic approach to facilitate a more efficient response to the challenges posed by the natural calamity. Insurers are urged to leverage this special dispensation, recognizing its time-limited nature and the imperative to expedite the resolution of claims for affected policyholders.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Circular No. IRDAI/NL/CIR/MISC/216/12/2023 Dated 18th December, 2023
All CEOs/CMDs of General Insurance Companies
Re: Insurance claims relating to Cyclone Michaung and subsequent heavy rains/floods
This is in continuation of the IRDAI’s advising the insurers to take all necessary steps to settle the insurance claims arising out of the Cyclone Michaung and subsequent heavy rains/floods on an expeditious manner.
2. In order to expedite the settlement of claims, the Authority, in exercise of powers conferred under Section 64UM (4) of the Insurance Act, 1938 hereby grants special dispensation to General Insurers by increasing the limit of losses for appointment of Surveyors and Loss Assessors specified in Regulation 12(2) of the IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015 as per the following.
1) Motor insurance – from current Rs. 50,000/- to Rs. 1,00,000/-
2) Other than motor insurance – from current Rs.1,00,000/- to Rs.5,00,000/-
3. The special dispensation granted is applicable to the claims arising out of Cyclone Michaung and subsequent heavy rains/floods for a period of two months from the date of issuance of the Circular only.
(Randip Singh Jagpal)