The IRDAI vide notification dated 26.20.2023 has constituted a committee to complete following tasks:
- Examine the existing insurance policy wordings and suggest simple and plain wordings that are legally correct and enforceable.
- Suggest simple policy wordings that clearly specify obligations and responsibilities of each of the parties to the contract.
- Suggest specifications like typefaces for written material and presentation thereof, for both print/electronic records that are easily readable and comprehendible.
IRDAI has undertaken this initiative considering that policyholders often find it difficult to comprehend the terms and conditions in insurance policy contract because of complexity in language used in the policy. This leads to the policyholder confused and lack of knowledge required to make informed decisions while purchasing an insurance policy.
