Regulator issues guideline for insurers to ensure transparency, accountability

The Insurance Development and Regulatory Authority (IDRA) on Sunday issued the ‘Insurance Claims Management Guideline, 2024’ including the direction of setting up a help desk at the respective insurance companies.

The guideline will also ensure transparency and accountability in the operations of insurers, aimed at safeguarding the interests of insured customers, it said.

A letter signed by IDRA director (Law) Abdul Mazid was dispatched to all life and non-life insurance companies and associated institutions on Sunday.

The guideline encompasses various entities such as insurers, reinsurers, surveyors, insurance agents, intermediaries, service providers, and extends to customers and other relevant parties as determined by the IDRA.

The Insurance Claims Management Guideline (Bima Dabi Babosthapona Guideline) delineates the obligations of insurers, duties incumbent upon insurance customers, responsibilities of reinsurers and surveyors, and the requisite criteria for effective insurance claims management.

Additionally, it outlines the establishment of help desks of insurance companies, including call centres, as well as details the roles and responsibilities of the board of directors and its committees.

The guideline also specifies five essential actions that insurance customers must undertake.

These include promptly notifying the insurer in the event of a loss or accident as per the stipulated timeframe outlined in the insurance contract, and subsequently submitting all pertinent documents related to the insurance claim to the insurer.

The guideline outlines seventeen actions incumbent upon insurance companies in managing insurance claims.

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