Even after its first diktat the people are not getting their Covid-19 insurance claims, the Finance Ministry today again instructed the Insurance Regulator to make arrangements to provide Covid-19 insurance compensation payment within three days.
This time, writing a letter today to Insurance Board (IB) , the ministry directed to settle payment of claims that meet all processes and documentation. The ministry also asked the insurance market regulator to send daily progress reports to the Finance Ministry. It is yet another example of how weak regulator can invite the government interference. Instead, the Insurance Board should have warned and taken action to the insurance companies, when they fail to settle the claims.
The ministry was forced to issue written directive after widespread complaints that insurance companies have been delaying or causing hassles to settle the claims against the Covid-19 insurance policies.
The ministry – in the letter – has written that many of its earlier instructions have not been effectively enforced. Earlier also, the finance minister calling the Insurance Board chair to the ministry had instructed to settle the Covid-19 insurance claims within seven days. But very few payments have been made so far, the ministry writes in the letter. The ministry has also reminded the regulator that the hotline phone service for coronavirus-related claims has not been set up in the Insurance Board in line with the directives of last month. “The Insurance Board has also not sent the daily reports to the ministry regularly as directed earlier,” the letter reads, adding that the time to settle has been reduced as the board has not been ‘in action’.
Only 15 per cent or some 4,929 Covid-19 insurance compensation claims have been settled, out of a total 32,784 claims till Tuesday, according to the board.
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