A working group has been set up by the regulator to look into this proposal
Your insurance company may soon start paying benefit-based health insurance and personal accident claims on installments, if a proposal to this effect is approved. The insurance regulator has set up a working group to look into the possibility of having such a payment mode by insurers.
Insurance Regulatory and Development Authority of India (IRDAI) has said that some general and health insurance have proposed payment of claims in installments for personal accident plans as well for lump sum payouts in health insurance.
The insurers have said that the concept of settlement of claim benefits in installments will enable the beneficiaries to receive payments in a series of pre-determined installments. At present, insurers pay claims in one go.
However, this will not be applicable for indemnity-based health insurance where a policyholder is reimbursed for the hospitalisation expenses.
IRDAI executive director (health) Suresh Mathur will be the chairman of the eight-member working group. This group will have members from general insurance and standalone health insurance companies.
The group will look into the need for allowing settlement of personal accident and benefit-based health insurance claims in installments. The group will also look at operational procedures to be put in place to protect the interests of policyholders.A report on this proposal will be released in eight weeks by the working group.