The Insurance Regulatory and Development Authority of India (IRDAI) has instructed all insurance companies to expedite the settlement of flood-related claims for policyholders affected by the recent floods in Assam.

In a directive issued following heavy rainfall and flooding that began on July 19, the regulator called for the immediate deployment of surveyors and loss assessors to assess damage in the affected regions. Insurers have been asked to establish special district-level claims desks to handle the volume of claims and to set up 24x7 helplines to assist policyholders with the claims process.

IRDAI has also encouraged the use of electronic communication channels to accelerate both claim registration and the disbursement of payments to affected individuals and businesses. The directive is aimed at ensuring timely relief for those impacted by what is an annually recurring natural disaster in the state. Such disaster-specific circulars have become a standard part of IRDAI's regulatory toolkit, with the regulator having issued similar expedited-claim instructions during past floods, cyclones, and other large-scale natural calamities across India.

Assam experiences seasonal flooding each year, primarily during the monsoon season, when the Brahmaputra River and its tributaries overflow. These floods routinely cause widespread damage to homes, agricultural land, and infrastructure across multiple districts. The agricultural toll is particularly significant for a state where farming is a primary livelihood, and crop-related claims under schemes such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) typically constitute a substantial portion of post-flood insurance payouts. However, India's relatively low non-life insurance penetration means that a significant share of flood losses remains uninsured, a structural gap that regulators and insurers have been working to address through expanded coverage and faster settlement cycles.

The source article can be found at Economic Times Markets.