Indian Army personnel look for dead bodies on the bank of Teesta river in Rongpo, near Gangtok in Sikkim. File
| Photo Credit: Ritu Raj Konwar

The Insurance Regulatory and Development Authority of India (IRDAI) has advised general insurers and standalone health insurance companies to expedite survey of all claims related to the recent devastating floods in Sikkim as well as disburse the payments.

“It needs to be ensured that all claims are surveyed immediately and claim payments/on account payments are disbursed at the earliest,” the regulator said.

In a circular, addressed to the CEO/CMDs, it advised the insurers to mobilise all resources towards ensuring immediate service response, including outsourced functions such as surveyors, loss adjustors and investigators. If required, such professionals from neighbouring States may also be deployed.

The regulator said insurers are also expected to review and streamline processing of claims by ensuring “only such documentation necessary to substantiate claim quantum to ensure expeditious final settlement”.

Taking note of widespread loss to property (homes and businesses) and infrastructure following floods in the Himalayan State earlier this month, IRDAI Executive Director (Non Life) Randip Singh Jagpal, in the circular, listed a few measures, including the insurers nominating a senior executive to oversee the claims response and set up special claims desk in the affected areas. Besides speeding up processing of claims and settlements, such desks will help facilitate release of on-account interim payments to assist early reinstatement of property/businesses.

IRDAI said the insurers ought to encourage policyholders to use electronic communication, wherever possible, for correspondence while initiating claim and filing relevant documents.