The Finance Ministry has asked insurance companies to expedite the claim settlement process for policyholders affected by floods in various states, including Karnataka, Maharashtra, and Kerala, according to sources.
“Initiate immediate action to ensure that all reported claims are registered and eligible claims are settled expeditiously,” said the Insurance Regulatory and Development Authority of India (IRDAI).
The insurers have been told to ensure all claims that are surveyed immediately and claim payments are disbursed at the earliest. They have also been asked to engage adequate number of surveyors in the affected areas.
The ministry has asked the insurers to clear claims quickly under various policies, including Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, and Pradhan Mantri Fasal Bima Yojana.
Widespread damage to life and property has been reported from different parts of the country as monsoon rains played havoc in several states. With regard to claims involving loss of lives, where people faced difficulty in obtaining a death certificate due to non-recovery of body, the regulator has asked insurers to follow the process adopted during the 2015 Chennai floods.
They have also been asked to update the regulator about state-wise progress report on the insurance claims settled on a weekly basis.
Due to heavy rainfall and flash floods, there are reports of loss of lives and properties in many states, including Karnataka, Kerala, Maharashtra, and Gujarat.