The regulatory direction is likely to benefit lakhs of policy holders, who face either rejection or delayed settlement of their claims on technical grounds
New Delhi: In a big relief to policyholders, the Insurance Regulatory Authority of India (IRDA) on Wednesday asked insurance companies not to mechanically reject claims on technical grounds, like delay in filing claim documents, reports PTI.
IRDA has issued these directives following complaints that claims are being rejected on grounds of delay in intimation and submission of documents to insurers.
"Rejection of claims on purely technical grounds in a mechanical fashion will result in policy holders losing confidence in the insurance industry, giving rise to excessive litigation," the regulator said in a communication to life and non-life insurance companies.
Although the policyholders are required to file claims within a prescribed time frame, the IRDA said, "This condition should not prevent settlement of genuine claims, particularly when there is delay in intimation or in submission of documents due to unavoidable circumstances."
The regulatory direction is likely to benefit lakhs of policy holders, who face either rejection or delayed settlement of their claims on technical grounds.
Advising insurers to suitably enunciate their stand to condone delay on merit in policy papers, the regulator said "...such limitation clause (of filing documentation) does not work in isolation and is not absolute".
It further said insurers should develop a mechanism to handle such claims with "utmost care and caution".
Insurers, it said, must not repudiate claims unless the reasons of delay are specifically ascertained and recorded.
Besides, the insurers should satisfy themselves that the delayed claims would have otherwise been rejected even if reported in time.
Sunny with a 16.95 km per litre of fuel economy will be available to customers across the country without any waiting period for delivery
Japanese automobile manufacturer Nissan's Indian subsidiary has launched its sedan car Sunny the 1.5-litre petrol engine car is priced at Rs5.78 lakh for the base model and Rs7.68 lakh for the top-end model (ex-showrooms in New Delhi).
It said it aimed to sell 12,000 units of the new car by the end of this fiscal. "We are planning to sell 40,000 units across all models available in India by the end of this fiscal. Of this, we aim to sell around 12,000 units of Sunny," Nissan Motor India managing director Kiminobu Tokuyama said at the launch.
The new car would compete with other mid-size sedans like Verna Fluidic, Ford Fiesta, Honda City, SX4 and Fiat Linea. The company further said that bookings for the new sedan have been started and the deliveries would be made in October. "Sunny with a 16.95 km per litre of fuel economy will be available to customers across the country without any waiting period for delivery," the company said in a statement.
The sedan Sunny is powered by a four-cylinder, 1.5-liter double overhead camshaft petrol engine, which can churn out a power of 99 PS at the rate of 6,000 rpm. The car boost of a large rear knee room for rear seat passengers, large centre armrest with cup holders in the rear seat.
The trade between India and South Africa in 2010-11 was $10.6 billion and is expected to touch $15 billion by 2014
India and South Africa today agreed to strengthen cooperation in the MSME (micro, small and medium enterprises) sector through joint ventures, technology collaborations and marketing tie-ups. South Africa is India's second largest trading partner in Africa. The trade between the two countries in 2010-11 was $10.6 billion and is expected to touch $15 billion by 2014.
"There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods," said Minister of State for Commerce and Industry Jyotiradiya M Scindia, who was in South Africa for a day.
He met South African deputy minister for trade and industry Elizabeth Thabethe and discussed various ways to increase trade cooperation between the two countries.
The two stressed upon the need for enhancing ties in the small and medium companies to tap the full potential of the bilateral trade.
"The MSME sector accounts for a large share of industrial output, employment and exports in both countries," said an official statement here, quoting Scindia.
"There are immense opportunities of cooperation and strategic alliances in MSME sector, which could be in the form of joint ventures, technology collaborations or marketing tie-ups," he added.
There is also a scope for the universities and research and scientific institutions to enter into R&D collaborations of both the countries, he said.
Scindia also expressed the hope that the India-SACU (South Africa Customs Union) preferential trade agreement will be concluded soon, boosting bilateral commerce.
Besides MSME, other potential areas of cooperation between the countries include diamond and coal mining.
"There are tremendous prospects for South African diamond mining companies to enter into long term contracts with the Indian diamond companies/rough purchasers like DIL, MMTC," said the statement.
Also, there is a tremendous scope for co-operation and JVs between public sector undertakings of the two countries in the coal sector, it added.