Thursday, August 4 2005 15:39 Hrs (IST) - World Time -

New Delhi: India's insurance regulator Insurance Regulatory and Development Authority (IRDA) has relaxed certain norms to facilitate speedy settlement of claims, estimated at Rs 1,500 crore, filed by policyholders in rain ravaged Maharashtra and Gujarat, including raising the slab of losses that requires assessment.

IRDA Chairman SCS Rao, in a circular, said the limit of losses that requires to be surveyed before settling claims had been raised to Rs 50,000 from Rs 20,000.

He also said that insurers may use their in-house surveyors for assessing losses amounting to Rs 50,000.

The provision though is applicable for the next two months only.

"This special dispensation is given to insurer to ensure expeditious disposal of claims and for mitigating the hardships to policyholders," IRDA said.

The relaxation of rules has been exercised as per the provisions in Section 64UM(2) of the Insurance Act of 1938.

Looking into the gravity of problem, IRDA had also asked insurers to speed up the settlement of claims and submit weekly report on the progress.

IRDA asked insurers to keep it informed about the estimated loss and the measures adopted by them to ensure discharge of their policy liabilities under the insurance contracts.

All the insurers on their part have announced steps to ensure speedy settlement of claims by setting up special cell besides waiving some of the procedural requirements in case of genuine claims.