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Question

What change has the Insurance Regulatory and Development Authority of India (IRDAI) made regarding the arbitration clause in general insurance?

A It has expanded the application of the clause to all policies. Correct Answer Incorrect Answer
B It has removed the clause from all insurance policies Correct Answer Incorrect Answer
C It has removed the clause for retail policies but not for commercial policies Correct Answer Incorrect Answer
D It has removed the clause for commercial policies but not for retail policies Correct Answer Incorrect Answer
E It has removed the clause from all existing policies but not for new policies Correct Answer Incorrect Answer

Solution

The Insurance Regulatory and Development Authority of India (IRDAI) has removed the retail sector of the general insurance industry from the arbitration clause, as policyholders have alternative avenues to resolve their complaints.   The clause will now only apply to commercial lines of business. The clause would continue to be applicable to all existing retail policies until the term of the policy expires, unless the policyholder requests its replacement with the commercial lines clause.For all new retail policies, the clause will be considered deleted, while it will apply to all commercial policies from the date of renewal falling on or after the date of the circular, which takes effect immediately.

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