1. Background
Insurance sector has embarked upon the journey to achieve the vision of ‘Insurance for All’ by 2047. Various regulatory reforms have been undertaken in this direction by taking up measures to protect interests of policyholders, prioritizing ease of doing business, encouraging innovation, competition, strengthen governance framework to foster growth and self-reliance in the insurance sector. The interests of policyholder have been at the core of all the initiatives undertaken which emphasize insurers and distribution channels to fulfill their obligations towards policyholders, including effective grievance redressal mechanisms and governance structures centered around policyholder welfare. Regulations on these aspects have been reviewed comprehensively and the Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests, Operations and allied Matters of insurers) Regulations, 2024 (hereinafter called “Regulations”) was notified on 22nd March, 2024. This is second of the two Master Circulars issued under these Regulations. The first Master Circular may be accessed at https://irdai.gov.in/ document-detail?documentld=5083599.
2. Provisions relating to Protection of Interests of Policyholders are being covered in this circular. The master circular contains two sections as under:
2.1 Section 1: It contains summary of important and relevant information at various stages of an insurance contract for the prospects / policyholders / customers. A prospect or policyholder to know his/ her rights and obligations at various stages of an insurance policy may visit this Section. Important and relevant information at various stages of
- Life Insurance Policies are in Part A,
- Health Insurance Policies are in Part B,
- Retail General Insurance Policies are In Part C.
Separate Master Circulars on certain relevant and important aspects of insurance business are also issued on Life Insurance Business; Health Insurance Business and General Insurance Business.
2.2. Section 2: It contains broad requirements to be complied with by an insurer under the Regulations.
3. This master circular is issued under section 34 of the Insurance Act, 1938, section 14 of the IRDA Act, 1999 and Regulation 56 of the Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests, Operations and allied Matters of insurers) Regulations, 2024 and shall be reviewed every year unless review or repeal is warranted earlier.
4. The Returns referred under this circular shall be submitted as per the provisions herein and the Master Circular on Submission of Returns.
5. All words and explanations used herein and not defined in this Master Circular but defined in the Insurance Act, 1938 (4 of 1938) or Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or Rules or Regulations made thereunder shall have the meanings respectively assigned to them in those Acts or Rules or Regulations.
6. In Order to remove any doubts or difficulties that may arise in the application or interpretation or any of the provisions of this Master Circular, the Comp~tent Authority may issue appropriate clarifications, as and when deemed necessary.
This has approval of the Competent Authority.
