Buying a personal accident cover or a benefit-based health insurance policy? Your insurer may well be asking how you would like to receive the claim — in lump sum or instalments.
Such a possibility looks imminent with a few general and health insurance companies approaching insurance regulator IRDAI seeking permission to pay 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,” said P.J. Joseph, Member-Non Life, Insurance Regulatory and Development Authority of India (IRDAI). He said this in a circular announcing the constitution of a working group to examine the concept of settlement of personal accident and benefit based health insurance claims in instalments. The concept would enable beneficiaries and claimants to receive payments in a series of pre-determined instalments, the communication said.
Besides studying the need for allowing claim benefits to be paid in instalments, the working group, with IRDAI Executive Director - Health Suresh Mathur as chairman, would discuss the operational procedures to be put in place to protect the interests of policyholders.
At concept stage
“This is only at a concept stage now,” sources in the insurance sector said. The proposal had presumably been mooted from a perspective of ensuring a regular income for the beneficiary or family. Policyholders opting for instalments are likely to get some additional monetary benefits.
The eight-member group, which has got two months time to submit its report, would also deliberate on the accounting, actuarial and investment norms that need to be put in place before considering the concept. Inputs of all concerned are to be be sought before a decision is taken, sources said.
Besides Mr. Suresh and three other officials of IRDAI, the group would have Apollo Munich Health Insurance MD and CEO Antony Jacob, New India Assurance Co. General Manager R.M. Singh, Appointed Actuary of ACKO General Insurance Biresh Giri, and HDFC Ergo General Insurance CFO Sameer Shah as its members.
