IRDAI issues Circular on travel insurance products and operational matters

Oct 01, 2019 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on September 27, 2019, issues Circular on travel insurance products and operational matters. IRDAI must comply with the following norms:

 The premium shall not be received more than 90 days in advance to the date of commencement of the risk covered in case of domestic travel or along with the ticket while purchasing the travel tickets, whichever is earlier.

 Insurance Covers towards overseas travel may be issued at any time.

 Insurers are responsible to ensure an informed choice to the persons to be insured and ensure compliance to Regulation 6 of IRDAI (Protection of Policyholders’ Interests) Regulations, 2017.

 The name of the Insurance Company which is offering the travel insurance cover, the amount of the premium that shall be collected towards travel insurance cover must specifically disclosed as the cost of travel cover, at the time of opting to buy a travel insurance cover.

 Rate of tax that is applicable to the premium must be separately specified.

 The prospect shall be able to specifically choose whether or not to buy the coverage.

 Where selected to buy, an option shall be provided for opting out or de-selecting the option before concluding the transaction.

 In order to ensure that every travel policy offered is in compliance with these norms, there shall be a clause in the agreement entered with the master policyholder and in the terms and conditions of the group policy along with a provision to cancel the group policy arrangement if the master policyholder is not adhering to the norms specified.

The insurers must verify at least once in a period of three months the travel policies offered are complying with the above norms. This Circular will come into force with immediate effect. All the group insurance arrangements that are not in compliance to these norms shall be terminated with effect from October 01, 2019.

[Circular No. IRDAI/HLT/CIR/MISC/174/09/2019]


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