Important changes mandated by IRDAI for life and generainsurance

14 June blogImportant changes mandated by IRDAI for life and generainsurance

IRDAI has recently decided to change some guidelines for life and nonlife insurance business. In today’s article we will discuss some important amendments done by IRDAI.

For life insurance business:

According to the new guidelines, policy loans have become mandatory in all life insurance savings products. This decision has been taken to meet the liquidity requirements of policyholders.

Annuity products with ‘Return of Purchase Price’ option and All non-linked savings products may offer the facility of policy loan based on eligible surrender value.

However unit linked products will not be permitted to provide facility of policy loan.

For general insurance business:

IRDAI has recently issued the master circular on general insurance. As per the new guidelines the general insurers can’t delay and reject insurance claims for the sake of wanting documents.

As per the new guidelines, general insurers need to follow strict timelines for claim settlements. According to IRDAI, the general insurers need to offer the ‘Pay as you drive/Pay as you go’ option as the first choice to motor insurance customers.

These new guidelines are majorly focused on customers easiness and customer-centric measures. This new master circular is issued by IRDAI by repealing as many as 13 circulars.

The main aim behind the constricting new guidelines is simplification of the process as well as ensuring the ease of the operations of insurers. These new guidelines are also helpful to understand the products of general insurance companies.

This new master circular is implemented for promoting innovation and enabling reduction in response time as well as aligning with the emerging markets needs. This master circular is applicable to all existing general insurance products, add-on cover and the general insurance coverage section within a package product.

These guidelines are not applicable for health insurance products included within a packaged product.

Important Questions:

• What are some changes done by IRDAI for life and general insurance?
• What is the new criteria of policy loan facility in life insurance business?

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