Login With Google
IRDAI moots changes to life insurance product norms
Why is it in the news ?
- The Insurance Regulatory and Development Authority (IRDAI) has mooted changes to some regulations pertaining to life insurance products.
- The changes also includes the quantum of minimum death benefit.
More in the news
- The IRDAI has sought comments from stakeholders on the draft IRDAI (Linked Insurance Products) Regulations and IRDAI (Non-Linked Insurance Products) Regulations.
- There were significant changes in the trends in product structures driven by the customers’ needs, wants and preferences.
Other Changes mooted:
- To extend the revival period of the policies to five years from the current two years in respect of non-linked products and providing an option for commutation up to 60% in respect of pension products.
- The minimum death benefit has been made seven times for regular premium products and 1.25 times for single premium products for all ages.
- Allowing partial withdrawal for linked pension products.
- Insurers can now design individual term, group term and credit and micro insurance products which offer a range of policy terms.
IRDAI
- The Insurance Regulatory and Development Authority of India is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India.
- It was constituted by the Insurance Regulatory and Development Authority Act, 1999.
- As per the section 4 of IRDAI Act' 1999, Insurance Regulatory and Development Authority of India (IRDAI) specify the composition of Authority.
- The Authority is a ten member team consisting of(a) a Chairman;(b) five whole-time members;(c) four part-time members,(all appointed by the Government of India)
- The agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
Source
The Hindu, IRDAI.