The Insurance Regulatory and Development Authority of India (IRDAI) plans to change the insurance laws so that insurers can only accept bike insurance renewal of a personal accident policy’s lifelong bike insurance if the policy has been in force for an unbroken period. The insurer will not be entitled to refuse a lifelong renewal of a personal accident insurance policy based on the policyholder’s age, per a draft released on February 16, 2022.
In its drafted health insurance regulations, the IRDAI has suggested three precise changes: concessions for better profiles, lifetime bike insurance renewal of personal accident coverage, and time-bound porting. Similarly, suppose a policyholder desires to transfer his insurance policy from one insurer to another. In that case, the insurance company will request the relevant information from the current insurance company within five days of receiving the portability form.
This modification aims to make the transferability of insurance policies a task with a deadline. According to the IRDAI draft, insurance companies have also been urged to provide reductions once a policyholder’s risk profile has improved.
Personal Accident Policy Amendment Proposed
Personal accident insurance has been made required for everyone, regardless of age, due to the significant incidence of traffic accidents in India. However, many people are still uninsured in personal accidents because personal accident insurance typically has an age restriction.
As a result, the policyholder will have coverage for the rest of their life. The IRDAI proposal suggested the removal of the phrase “personal accident products” from this sentence. People can also avail of bike insurance checks online to check their coverage.
Increased Concessions for Risk Profile
Wherever the risk profile gets improved, it has been suggested that insurers should provide concessions. Loading is an additional sum applied to the insurance premium sum to cover high-risk clients. Presently, only removal of loading is permitted at the time of renewal if the customer’s risk profile has improved.
The current high regulations state that no insurer shall resort to new underwriting at the renewal stage by calling for a medical examination, new proposal form, etc., where the sum assured offered is the same.
Insurance Portability with a Time Limit
Timelines for contacting the existing insurer for claim information have been recommended to make the portability of bajaj allianz two-wheeler insurance renewal policies a time-bound process. According to a proposed regulation, the insurance company must obtain the essential information, including the policyholder’s medical and claim history, from the current insurance provider within five days of receiving the portability form.
As ‘time-bound porting’ is a widespread practice in health insurance, when customers move their policies to pursue better coverage and protection for policyholders. Before the announcement of the proposed modifications to the rules, Irdai had released the draft to gather feedback from stakeholders in the insurance industry. Because portability has been quite popular in health insurance, it was previously done manually, which required at least a 15-day or longer; this regulation was rather necessary.
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