In India, Policyholder is allowed to give permission to appoint third party for handling the claim process?

Yes, in India, a policyholder is allowed to give permission to appoint a third party for handling the claim process. This is known as an authorization letter, where the policyholder authorizes a third party such as a friend, relative, or a professional claims assistance company to handle the claim process on their behalf.

The third party may assist the policyholder in filling out the necessary forms, submitting the required documents, and communicating with the insurance company to ensure timely and efficient processing of the claim. This can be particularly helpful if the policyholder is not familiar with the claim process or if they are unable to handle it themselves due to illness or other reasons.

However, it is important to note that the policyholder remains responsible for the accuracy and completeness of the information provided to the insurance company. Any errors or misrepresentations made by the third party may result in delays or rejection of the claim. Therefore, it is recommended that the policyholder carefully choose a reliable and trustworthy third party to handle the claim process on their behalf.

According to IRDAI Guidelines on Third Party Administrators for Health Insurance Business, a policyholder may authorize a third party to act on their behalf for claim settlement. The guidelines state that the policyholder must provide written authorization to the third party, clearly stating the scope of their authority and the duration of the authorization. The authorization should also include the policyholder's signature and other identifying details such as policy number and date of birth.

In summary, while there are no specific provisions in Indian insurance laws that prohibit policyholders from appointing a third party to handle their claims, it is subject to compliance with the guidelines and regulations set forth by the IRDAI. The policyholder must provide written authorization to the third party, and insurers may engage the services of a registered third-party administrator to facilitate the claim process.