Top Insurance-Related News in January 2024

Uncovering the top news this week in the insurance industry:

TRAVEL: InsuranceDekho announced the suspension of travel insurance to the Maldives in support of National Interest

We at InsuranceDekho announced on the 8th of January 2024 that we have suspended the sale of travel insurance to Maldives Island in support of national interest. This decision came in response to the derogatory remarks made by now-suspended Maldivian ministers against India and Prime Minister Narendra Modi, stemming from his recent visit to Lakshadweep Island.

Read the details here

GENERAL: Rajay Kumar Sinha, current MD and CEO of SBI Capital Markets appointed as a member of Finance & Investment at IRDAI

The Government of India has recently announced the appointment of Rajay Kumar Sinha as the new member of Finance & Investment at the Insurance Regulatory and Development Authority of India (IRDAI). As per the reports, Rajay Kumar Sinha will hold this position for three years from the date of assuming his charges at IRDAI

Source: IRDAI 

HEALTH: Go Cashless with your hospitalisation needs as per the new IRDAI regulations

The Insurance Regulatory and Development Authority of India (IRDAI) and the General Insurance Council will formally announce the nationwide common cashless hospital network in a press conference on the 24th of January 2024. This announcement will come with the following conditions: 

• The health insurance policyholder will have to inform the insurer at least 48 hours before getting admitted to the hospital.
• The cashless treatment in a hospital will be dependent on the negotiations on pricing reached between the hospital and your health insurance company subject to policy terms and conditions. 

NOTE: In cases of emergencies, the insurance holder can inform the insurer 48 hours after getting admitted to the hospital.

Read more about cashless hospitals here

GENERAL: A simplified Customer Information Sheet has come into action as directed by IRDAI

Effective January 1st, 2024, all insurance providers now have to provide a simplified Customer Information Sheet (CIS) as per the directions of the Insurance Regulatory and Development Authority of India (IRDAI). This decision comes in light of simplifying the intricacies of insurance policies and making customer’s lives easy. 

Source: IRDAI

MOTOR: In case of An Accident by Stolen Vehicle, The Insurer Will Not Be Liable to Compensate Anyone

The Delhi High Court has reiterated that in case of an accident, where the offending vehicle was stolen, the insurance company or the owner of the vehicle will not be liable to make any payments or compensation. This came into action after the High Court stressed the powers granted to the Motor Vehicle Tribunal under Section 169 of the Motor Vehicles Act, through which an inquiry can be held, and the attendance of witnesses can be enforced.

GENERAL: What’s the Insurance Industry Expecting in Budget 2024?

The insurance industry expects some reforms in the upcoming budget, such as getting full tax benefits on pension and annuity plans, separating the tax exemption for term insurance plans, making life insurance premiums completely tax-free, and lowering GST on specific insurance schemes. The experts from the insurance industry are optimistic that these reforms will encourage more and more people to buy insurance plans so that they enjoy benefits such as financial protection against emergencies, greater tax exemptions, and more.