IRDAI – Arbitration Clause in General Insurance Policies – Amendment by IRDAI Circular dated 27.10.2023

The Circular now provides that all policies issued under the “Retail Lines of Business” shall not have any arbitration clause. However, all policies issued under the Commercial Lines of Business shall have an arbitration clause that (i) the parties to the contract may mutually agree and enter into a separate Arbitration Agreement to settle any and all disputes in relation to this policy and (ii) Arbitration shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996.   Even transitional provisions and the provisions for the existing policies are made in this Circular.    This has come into force from 26.10.2023 itself.