Insurance sector regulator IRDAI has asked all the insurers to inform policyholders through messages on receipt of premium from January 1, aimed at protecting the interest of consumers.
The Insurance Regulatory and Development Authority of India (IRDAI) said the order is being issued to enhance the policyholder protection and information.
Wherever the mobile phone number of the policyholder is available in policy records with the insurer, the receipt of premium by the insurer under a policy shall be immediately informed to the concerned policyholder on his mobile phone number by an automatic SMS generated by the system, it said in the order.
Also, in case of new contracts, it may be ensured that the correct mobile phone number is captured to ensure SMS is sent on receipt of premium by the insurer.
"All Insurers shall put in place systems and procedures to ensure the above intimation to policyholders. The above guidelines shall be effective from 1st January 2019," IRDAI said.