IRDAI Proposes New Norms For Insurance Products
IRDAI’s proposal includes bringing changes to insurance products including payment to nominees in case of death of policy holders.
The insurance regulator on Friday proposed tweaking norms for different insurance products, including those related with payment to nominees in case of death of policy holders.
The Insurance Regulatory and Development Authority of India had constituted a committee to review 2013 product regulations on linked and non-linked insurance products.
The panel was set up to consider the significant changes in the trends of product structures mainly driven by the customers' needs, wants and preferences since 2013.
Later, a working group was constituted to consider the recommendations of the committee and the feedback received thereto.
The draft proposal suggests several changes to the existing regulations.
"Minimum death benefit has been made seven times for regular premium products and 1.25 times for single premium products for all ages,” the body presented as one of the key changes in the current regulations. Currently, the minimum payment on death depends upon the age of the insured person.
IRDAI also proposed to extend the revival period for non-linked policy products to five years from the current two years. "Insurers can now design individual term, group term and credit and micro insurance products which offer a range of policy terms," the body recommended. The regulator has invited comments on the exposure draft till Nov. 15.