The Insurance Regulatory and Development Authority of India’s quick move in instructing insurers to ease and expedite claims settlement for victims of the train accident in early-June has kept it in good stead.
By Jimmy John
The triple train accident in the state of Odisha in Eastern India is considered to be one of the worst rail accidents to happen in India, killing over 275 people and injuring over 1,000.
Moving quickly, the IRDAI requested insurers to dispense with some of the requirements for claims or rely on alternate documents for claims settlement. The regulator also asked insurers to work with railway and government authorities to ensure that claims are processed speedily.
Insurers streamline claim process
Taking their cue from the regulator, insurers across the board, both life and non-life, were quick in extending their support and assistance to those impacted by the rail accident. Many insurers moved swiftly to bring in changes in their claim settlement processes and some even assigned dedicated single point of contacts to aid the victims’ families and expedite claim processing.
Insurers were also supporting victims’ families by accepting alternate valid proof of death or injury. They have also waived the requirement of death certificate issued by the municipal authorities and are accepting the list of casualties published by the railway board/police authorities/state government or central government or municipal authority or any authority recognised by state/central government confirming death during the train accident.
Dedicated teams established
Dedicated teams have been set up to ease the claim settlement process and ensure timely financial relief to the policyholders and their families who have been affected by the accident.
To expedite the claims settlement process, insurers are co-ordinating with the railway authorities in checking the passenger list, taking feedback from railways and settling the claim without asking for some of the corroborating documents that are normally collected in case of regular claim settlement.
Insurers build long term goodwill
The Indian railways offers a travel insurance plan for train journeys with a premium of 35 paise ($0.0043) per passenger. In case of death, insured passengers receive 100% of the sum insured, up to INR1m.
There are also provisions for permanent total disability, permanent partial disability and hospitalisation expenses. Many of those affected by the train accident did not have a valid ticket and so will be out of the ambit of this insurance scheme.
Despite the challenges before them, insurers are going the extra mile to identify victims who held policies, ensuring that their nominees are promptly contacted for claim initiation. If the policy includes an ‘accidental death rider’, additional coverage will be provided, while policies without this rider will pay out the sum assured as the claim amount.
Each claim will be processed based on the terms and conditions of the respective policy. The proactive stand of the regulator and prompt action from the insurers has created a very positive image of the industry in the market and augurs well for the future of the sector. A