In the aftermath of the tragic crash of Air India Flight 171, the Insurance Regulatory and Development Authority of India (IRDAI) has issued an urgent directive to all insurers and reinsurers, mandating expedited claims processing for the families of victims.
The regulator has asked the insurers to use the publicly available passenger list and verify details against their databases of overseas medical insurance, personal accident, and life insurance policies.
The insurers have been asked to initiate fast-track claim settlements without insisting on formalities like FIRs or post-mortem reports where official confirmation of death is available.
It has said that claims must not be denied or delayed due to procedural issues if the deceased individuals are confirmed from the passenger list or are victims from the crash site, including BJ Medical College hostel.
IRDAI has directed the Life Insurance Council and General Insurance Council to jointly establish a dedicated cell at the hospital where victims are being treated. This cell will coordinate with insurers to provide real-time information and assistance for processing life and health insurance claims.
Each insurer has been asked to appoint a senior-level nodal officer to coordinate with the joint cell and oversee the prompt settlement of claims. Insurers must begin submitting weekly reports to the IRDAI from June 16, detailing claim settlements, with council websites also expected to publish insurer-wise summary data, says the IRDAI directive.
The crash occurred on June 12, when the Boeing 787-8 Dreamliner, en route from Ahmedabad to London Gatwick, crashed into the BJ Medical College hostel shortly after take-off from Sardar Vallabhbhai Patel International Airport. The ill-fated flight was carrying 242 people, including 230 passengers and 12 crew members.
IRDAI emphasized that the insurance industry must act with empathy and urgency, ensuring that the families of victims receive timely and hassle-free financial relief during this difficult time.
It must be noted that insurance companies have announced easier processes for claims settlement for those hit by the crash.
Public sector insurer LIC has announced many concessions to mitigate the hardships of the claimants of LIC policies. “In lieu of death certificates, any evidence in government records of death of the policyholder due to the plane crash or any compensation paid by Central/State Government /Airline Authorities will be accepted as proof of death,” it said.
HDFC Life has said a claim can be initiated by nominees/ legal heirs of policyholders by simply providing proof of death issued by the local government, police or hospitals.
SBI Life has said it will not insist on submission of death certificate from the claimant. SBI Life will consider evidence of death from an official government record or entries from governmental portals, municipal records or e governance database as proof of death.
“Claim can be intimated with minimum documents like claim form, Policy Document and details of KYC and bank account of the nominee,” said SBI Life, adding that families and nominees of policyholders affected by the crash are encouraged to connect with the nodal officer or connect with the nearest SBI Life branch or reach out to SBI Life’s dedicated customer support for assistance with claims.