India insurers free to change wording in corporate policies

The Insurance Regulatory and Development Authority of India (IRDAI) is to allow general insurers to change the wordings in all corporate insurance policy documents, except motor third party. The move is expected to lead to a sea change in the way insurance policies are issued, insurance officials say.

Insurers can now change terms, conditions, clauses, warranties, and policy and endorsement wordings applicable to certain classes of business such as Fire, Engineering, Motor, Workmen’s Compensation and other classes of insurance, which were not allowed earlier, reported The Indian Express, citing a gazette notification issued by the government.

The IRDAI decision is expected to benefit the general insurance industry, businesses in general and customers. The decision will enable insurers to customise policy wordings in accordance with the corporate customer’s risk profile, encourage product innovation and meet the larger customer needs.

Before liberalising the policy wordings, the IRDAI freed all tariffs such as for fire, motor and engineering insurance, with effect from 1 April 2024.

This article first appeared on our sister website Asia Insurance Review. For further news from Asia Insurance Review, please visit www.asiainsurancereview.com

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