The move will help the life insurers to provide enhanced flexibility while ensuring that policyholders benefits are not adversely impacted, the life insurers had told the IRDAI
Hyderabad:
The IRDAI has now allowed the life insurers to modify some of their products which were earlier withdrawn and closed for new business but have existing policies in their books.
The life insurers had earlier pleaded with the IRDAI to allow such modifications so that they can provide additional options/benefits to existing policyholders.
The move will help the life insurers to provide enhanced flexibility while ensuring that policyholders benefits are not adversely impacted, the life insurers had told the IRDAI.
The IRDAI has now allowed the following options in respect of withdrawn products of life insurers.
-Addition of existing riders which are open for sale,
-Addition of premium payment modes (frequencies),
-Reduction in interest rate for revivals/policy loans,
-Addition of one or more payment frequencies to income benefits payable to policyholders,
However the life insurers will have to ensure that withdrawn File and Use applications will not be altered/amended while offering the above options to the existing policyholders and offering the above options is not detrimental to the interests of the policyholders, said the IRDAI.
The term of rider should also not exceed outstanding policy term under the base policy.