Insurance Regulatory and Development Authority of India (IRDAI) in its latest draft guidelines has proposed the option of settlement of claims in installments when it comes to personal accident policies issued by General and Health Insurers and Benefit Based Health Insurance Policies. Post the happening of any contingent, insurers would be expected to offer an income in the hands of the claimants for a reasonable period of time on the happening of the contingent event insured under an underlying policy. “It is further considered that this option may enable policyholders of benefit based health insurance policies get a stream of income over a predetermined period of time post triggering of claim,” reads the circular. Here the policyholders would be given an option of choosing either settlement of claim in lump-sum or in equated installments or both
in parts.