IRDAI Reg Section 18 : Provisions applicable to General and Health insurers

Explanation using Example

Example 1: Nomination Requirement for a New Health Insurance Policy

Introduction: John, a 35-year-old software engineer, decides to purchase a new health insurance policy from a reputed insurer. During the application process, the insurer requests John to provide a nominee for the policy benefits.

Application: According to Section 18 of the IRDAI Regulations, 2024, insurers must obtain a nomination at the time of issuing new policies. John is required to nominate a beneficiary who will receive the policy benefits in the event of his demise. This nomination is crucial for ensuring that the benefits are directed to the intended recipient without legal complications.

Outcome: John nominates his wife, Sarah, as the beneficiary. The insurer records this nomination in the policy documents. If John fails to provide a nominee, the insurer may face procedural delays in processing claims, and the benefits may be subject to legal disputes among potential heirs.

Conclusion: By complying with the nomination requirement, John ensures a smooth transfer of benefits to Sarah, avoiding potential legal challenges. Non-compliance could lead to disputes and delays in claim settlements.

Example 2: Renewal of an Existing Group Insurance Policy

Introduction: A medium-sized company, XYZ Ltd., is renewing its group health insurance policy for its employees. The insurer reminds the company to update the nomination details for each emp...

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