News Non-Life17 Oct 2018

India:Panel to study paying non-life claims in instalments

17 Oct 2018

The IRDAI has formed a panel to examine the feasibility of paying out general and health insurance claims in instalments.

“Some general and health insurance companies have proposed payment of claims in instalments in respect of personal accident policies and benefit-based health policies as against lump sum payments,” IRDAI said in a circular.

The concept of settlement of claim benefits in instalments will enable the beneficiaries/claimants to receive payments in a series of pre-determined instalments, reports Hindu Business Line quoting the IRDAI circular.

In order to examine the proposal, the regulator has constituted a working group with Mr Suresh Mathur, ED (Health), IRDAI, as its chairman.

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Recent Comments

RAVINDRA MOHAN

This is the right approach. People may not know how to manage lump sum payments during the time of distress. Quite likely that it will be spent for wrong purposes, wrong advise from people near them with vested interest. Once they stablize and come out of distress, these recurring compensations will be helpful for their dignified living.

17 October 2018

Kobjeglavski

@Ravindra Mohan ...Yes and it will help insurance companies which have a CR of 108 or more not to shut down, but be bailed-out by the cash flow. And probably is this the main, true reason for this proposal!

17 October 2018

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