IRDAI on 20th March, 2024 has issued the Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations, 2024. These regulations shall be applicable to all insurers and distribution channels except for those engaged exclusively in reinsurance business, unless otherwise specified.
These regulations shall come into force from the date of the publication in the Official Gazette or 1st April, 2024, whichever is later. These regulations shall be reviewed once in every 3 (three) years from the date of notification, unless a review or repeal or amendment is warranted earlier.
Objective
- To ensure fair treatment of prospects at the stage of solicitation and sale of insurance policies.
- To ensure that interests of policyholders are protected, and the conduct of the insurer and distribution channel are not prejudicial to the interests of policyholders.
- To ensure that insurers and distribution channel fulfil their obligations towards policyholders and have in place standard procedures including best practices for sale and service of policy holders.
- To ensure policyholder-centric governance by insurers and distribution channels, with emphasis on grievance redressal.
- To ensure that insurers follow prudent practices on management of risks arising out of outsourcing with a view to preventing negative systemic impact and to protect the interests of the policyholders.
- To ensure sound and responsive management practices for effective oversight and adequate due diligence with regard to outsourcing of activities by insurers.
- To ensure that opening or closing of places of business within or outside India by insurers is conducted in a manner which is not prejudicial to the interests of policyholders.
