Key Provisions of the Master Circular

The Master Circular mandates several important changes for both life and general insurance sectors:

1. Insurers must provide essential summaries of policy information at multiple stages of the insurance contract, including:
   • Pre-Sale Stage: Prospective policyholders must receive clear guidance about the policy features and terms before the sale.
   • Proposal Stage: Insurers must provide detailed information during the proposal process.
   • Policy Receipt: Upon receipt of the policy documents, a summary of key features, benefits, and exclusions must be provided.
   • During the Policy Term: Regular updates about policy terms and conditions are required.
   • At Claim Time: Clear instructions and information must be provided when a claim is made.
2. A Customer Information Sheet (CIS) must outline:
   • Type of Insurance: Term life, whole life, or other types of coverage.
   • Sum Assured: The amount payable in case of a claim.
   • Benefits: Details of coverage provided by the policy.
   • Exclusions: Events or situations not covered by the policy.
   • Important Details: Free look period, renewal date, policy revival options, loans, etc.
   • Claims Procedure: Instructions on how to file a claim.
   • Policy Servicing: Customer support and assistance information.
   • Grievance Redressal: Complaint process and contact for Insurance Ombudsman.
3. CIS and proposal forms must be available in regional languages upon request.
4. 30-Day Free Look Period: Policyholders can cancel within this period if dissatisfied, with no premium deposit required except where risk cover begins immediately.
5. Insurers must collect nominee details, including bank account information, at the proposal stage to facilitate prompt claim settlements.
6. Insurers must provide a search tool on their websites to verify authorized distribution channels and integrate IT systems with Digilocker for better document access.
7. Turnaround times for processing and claims settlements are specified. Policyholders can search for unclaimed amounts on the IRDAI-managed Bima Bharosa website.