Odisha train crash: Insurers must expedite, ease claim settlement process for victims, says IRDAI

The Coromandel Express accident at Behanaga Bazar is unprecedented not only in terms of the number of human lives involved but also the number of high-speed trains.

The Insurance Regulatory and Development Authority of India (IRDAI) has asked all insurance companies – life, non-life and standalone health insurance companies – to proactively process, simplify and fast-track settlement of claims related to the triple train crash in Balasore district of Odisha on June 2.

“Claims shall be processed proactively, if the insured’s name is in the list of deceased or injured persons…and was travelling in the trains which met with accident as identified by the appropriate government authorities,” the IRDAI said in a circular issued to insurers on June 5. They will also have to fast-track disbursement of approved claims.

Also Read: Odisha train accident: FinMin urges insurance companies to expedite claim settlement

Granular information

It has also directed insurers to publish information related to Odisha train accident claims on their website on a daily basis for one week, and then on a weekly basis for a month.

The data to be displayed includes granular information on claims received, settlement and outstanding under Pradhan Mantri Suraksha Bima Yojana (PMSBY), policies issued through Indian Railway Catering and Tourism Corporation (IRCTC), other individual or group personal accident policies, as well as health insurance claims.

The companies will have to make provisions for speedy settlement of accident claims. “There is an urgent need for the insurance industry to take immediate steps to mitigate the hardships of the affected insured population by ensuring immediate registration and settlement of eligible claims,” the insurance regulator has said.

They will have to set up a dedicated helpline to deal with queries from affected passengers and their families. It will have to be managed under the supervision of a senior officer, who would also act as the nodal officer to handle queries from affected passengers or their relatives.

Ensure smooth process

“The nodal officer would be coordinating the receipt, processing, and settlement of all eligible claims. The details of the nodal officer and the helpline number of the insurer may be given due publicity including hosting on the website,” the IRDAI circular said.

Insurance companies will have to designate offices or set up special camps to ensure smoother claim settlement. IRDAI has asked them to publicise the details for accessing these offices through their websites, media, and state government channels.

The insurance regulator has directed insurers to take on the responsibility of rolling out awareness campaigns elaborating on the simplified process of filing claims.

Several insurers including government-owned behemoth Life Insurance Corporation of India (LIC), Bharti-AXA Life, Bajaj Allianz General Insurance, Liberty General Insurance, amongst others, have issued statements affirming that they will work towards proactively identifying victims and their nominees, and ease the claim process to ensure quicker settlement.