Life insurers get more time for launching new products

The new guidelines applicable for traditional and ULIP products will change the surrender values and the sum assured of the policies.It will also ensure higher withdrawals in pension plans,freedom to take risks, invest in equities, flexibility to reduce premium, greater choice when buying annuities and lower life cover in Ulips


Hyderabad: 

Providing last minute relief to the life insurers, the insurance regulator IRDAI on Friday has extended the deadline for them for launching their modified products by two months from Dec 1, 2019 to Feb 1, 2020.

 

In July, in a bid to make the products more efficient, the Irdai had released the final product regulations covering term, endowment,unit-linked insurance plans (Ulips) and pension plans and the life insurers would have launched their modified products after withdrawing their old products by Dec 1..To make the product modification process more efficient, IRDAI in July had  decided modifications to the approved products and riders will be allowed without complete procedure under File and Use:

 

IRDAI said that the new guidelines with respect to benefit illustrations, periodic statements, agent training for unit-linked insurance plans will be applicable from February 1, 2020 as against the earlier December 1, 2019 deadline.


However, the extension doesn’t apply in the cases where products already approved under File & Use(F&U) under new regulations, products filed under F&U and are in process as on today and products already filed under Use and File as on today.

 

`It is also clarified that no further requests for extension will be entertained. All other terms and conditions of the referred circulars remain same.It is advised that all life Insurers endeavor filing of products in compliance with new regulations at the earliest, without waiting for the last date available,said IRDAI .
 

However, the deadline to refile or modify existing products, which was fixed at February 29, 2020, will continue. This applies to products under the linked and non-liked insurance segment.

 

The new guidelines applicable for traditional and ULIP products will change the surrender values and the sum assured of the policies.It will also ensure higher withdrawals in pension plans,freedom to take risks, invest in equities, flexibility to reduce premium, greater choice when buying annuities and lower life cover in Ulips.
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