Cyclone Remal has caused significant damage across various states, leading to widespread loss of lives, destruction of property (homes and businesses), and severe damage to infrastructure. In response, the Insurance Regulatory and Development Authority of India (IRDAI) has issued urgent instructions to all insurance companies, including Life and Standalone Health Insurance Companies, to expedite the settlement of claims arising from this disaster.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Press Release
IRDAI advised Insurance Companies to settle Cyclone Remal Claims on Fast Track
The Cyclone Remal in various states have caused widespread loss of lives, property (homes and businesses) and infrastructure. The Sector Regulator IRDAI issued instructions to all Insurers including Life and Standalone Health Insurance Companies to mobilise all resources to ensure immediate service response including engaging the services of Surveyors, Loss Adjustors and Investigators for quick settlement of claims arising out of the havoc created by the Cyclone and subsequent heavy rains causing floods.
The insurers have been advised to communicate the nomination of a Senior Executive to the Chief Secretary immediately. Districts reporting large numbers of claims to oversee by a designated District Claims Service Head. The insurers to give wide publicity on the contact details of these officers in their websites and also in the media.
Insurers are advised to respond/assist the claimants through their 24×7 helplines, special claims desks at district level with delegated Claims Settlement Authorities for speedy processing and settlement of claims. Insurers have been advised to settle claim payments/on account payments at the earliest and also encourage policyholders to use electronic communication wherever possible for correspondence.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Circular no: IRDA/NL/CIR/MISC/88/06/2024 Dated: 4th June, 2024
All CEOs /CMDs of all Insurance Companies, including Life and Stand-Alone Health Insurance Companies
Re: Insurance claims relating to Cyclone Remal and subsequent heavy rains/floods
The Cyclone Remal and subsequent heavy rains/floods (May 2024) have caused widespread loss to human lives, property (homes and businesses) and infrastructure in various states.
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 (General, Life and Standalone Health Insurers) are advised to submit information related to the Cyclone/flood claims to the IRDAI in the format attached on a weekly basis at nl-catastropheirdai.qov.in by General and Health Insurers and at lifeirdai.qov.in by Life Insurers.
Randip Singh Jagpal
Executive Director (Non-Life)
