IRDAI Mandates One-Hour Processing For Cashless Health Insurance Claims

(MENAFN- KNN India) New Delhi, May 30 (KNN) In a significant move aimed at enhancing the cashless claims experience and incentivising prudent healthcare utilisation, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced new directives through a master circular on health insurance.

Insurers will be required to process cashless authorisation requests within one hour of receipt, facilitating seamless access to healthcare services for policyholders.

To comply with this directive, insurance companies have been granted a transition period until July 31, 2024, to implement the necessary systems and procedures.

Additionally, the circular mandates the provision of a 'No Claims Bonus' (NCB) for health insurance policyholders who have not filed any claims during the previous policy year.

Insurers must offer policyholders the choice between increasing their sum insured or receiving a discounted premium upon renewal, contrasting with the current practice of solely providing a cumulative bonus added to the sum insured.

"Customers have long expressed a desire for premium discounts in claim-free years. This regulatory move empowers policyholders with an incentive to continue their coverage while promoting responsible healthcare utilisation," remarked Bhaskar Nerurkar, Head of Health & Travel Administration, Bajaj Allianz General Insurance.

Industry experts note that the motor insurance segment already incorporates a structured no-claim bonus, with discounts on renewal premiums reaching up to 50 per cent over a 5-year claim-free period for own-damage cover.

The IRDAI's initiatives underscore a commitment to enhancing policyholder experiences, fostering transparency, and aligning industry practices with evolving consumer expectations in the dynamic health insurance landscape.

(KNN Bureau)

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