Insurance regulator IRDAI on Monday pointed out that insurance policy documents could be “fraught with legalese” and asked insurance companies to revise customer information sheet that helps policyholder to easily understand the basic information about their policy.

“It is observed that several complaints are still emanating as a result of asymmetry of information between insurer and policyholder.

“In this backdrop, the existing customer information sheet has been improved and now seeks to convey basic information about the policy purchased in a manner that is easily understood,” the regulator said in a circular.

The revised customer information sheet (CIS) now includes basic information such as policy type, sum insured, extent of policy coverage, exclusions, waiting period, financial limits of coverage including deductible and co-payments.

Crucially, the CIS now includes details on procedure to be followed for claims, the turnaround time for claim settlement, call center numbers and details of company officials for policy servicing along with details of grievance redressal mechanism.

The CIS shall also include things that a policyholder should keep in mind such as free look cancellation, migration and portability, change in sum insured along with policyholder obligations such as pre-existing disease conditions before policy purchase.

“Insurers, intermediaries and agents shall forward the Customer Information Sheet to all policyholders and acknowledgement, physical or digital, shall be duly obtained,” IRDAI said in its circular.

Insurers are required to obtain signatures of the policyholders confirming that they have noted the details of CIS and received it.

“This step is expected to result in better-informed policyholders, reduced disputes and delays, and a seamless health insurance experience for policyholders,” the regulator said.

IRDAI has been taking steps to simplify and standardise the policy wordings.

The regulator said that it is important for a policyholder to understand terms and conditions of the policy that has been purchased.