The Insurance Regulatory and Development Authority (IRDA) has ensured that product compliant with the new guidelines and filed for approval would be cleared in a week’s time.
Till now, IRDA has cleared 50 products under the new regulatory regime for traditional products.
In February this year, the IRDA had notified changes in the traditional product guidelines. This includes changes in the surrender charges, product structures and commissions paid to the agents.
According to these norms, products that do not conform to these norms will have to be re-filed. The deadline for re-filing group insurance products is first July 2013 and for individual products first October 2013.
The IRDA has said that it has put out all details on its website. If a product meets all guidelines, they will be cleared very fast, If not, it will be sent to be revised and hence will take a longer time.
The IRDA will employ additional people to fast-clear the continuous flow of product re-filing.
IRDA’s norms meant that after first October 2013, existing products of life insurers cannot be sold to customers if they are not in tandem with regulatory changes. Hence, life insurers are now re-filing products to ensure that they get the approvals on time and have a complete product portfolio by October.
The IRDA is also considering the request of life insurers to approve priority products. Though companies might re-file two to three products at a time, the approval will be given first to those on top priority for the life insurance company concerned.
On an average, IRDA approves 20 products every month for life insurance companies. However, with almost 70-85% of existing traditional products coming for re-filing, it is estimated that almost 40-50 products could be approved in a month.
vinay mohanty
Till now, IRDA has cleared 50 products under the new regulatory regime for traditional products.
In February this year, the IRDA had notified changes in the traditional product guidelines. This includes changes in the surrender charges, product structures and commissions paid to the agents.
According to these norms, products that do not conform to these norms will have to be re-filed. The deadline for re-filing group insurance products is first July 2013 and for individual products first October 2013.
The IRDA has said that it has put out all details on its website. If a product meets all guidelines, they will be cleared very fast, If not, it will be sent to be revised and hence will take a longer time.
The IRDA will employ additional people to fast-clear the continuous flow of product re-filing.
IRDA’s norms meant that after first October 2013, existing products of life insurers cannot be sold to customers if they are not in tandem with regulatory changes. Hence, life insurers are now re-filing products to ensure that they get the approvals on time and have a complete product portfolio by October.
The IRDA is also considering the request of life insurers to approve priority products. Though companies might re-file two to three products at a time, the approval will be given first to those on top priority for the life insurance company concerned.
On an average, IRDA approves 20 products every month for life insurance companies. However, with almost 70-85% of existing traditional products coming for re-filing, it is estimated that almost 40-50 products could be approved in a month.
vinay mohanty
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