The Hindu Business Line : IRDA wants 'plain language' in contracts

THE Insurance Regulatory and Development Authority (IRDA) has embarked on a `plain language movement' in insurance contracts in an attempt to reduce worries for the general public and save trouble for the grievance redressal authorities over claim disputes. According to the IRDA Chairman, Mr C.S. Rao, "Since an insurance contract is a promise, clear and precise language in describing what is being promised and when and under what circumstances those promises would be honoured will make all the difference to smooth and fair business dealings." In a communication to the industry stakeholders, the IRDA Chairman has said that the plain language movement in Government and business circles in the US and many European countries was still an emerging concept in India.

IRDA has embarked upon various new guidelines to streamline the working of the industry. Last month it announced several initiatives relating to group insurance, corporate agents, and changes in the appointment of statutory auditors for insurance companies.

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