Saturday, March 16, 2013

New Norms for Life Insurance Products

Norms for LIC Products 
 
The Insurance Regulatory and Development Authority (IRDA) has informed that two regulations have been framed, namely, (i) Insurance Regulatory and Development Authority (Linked Insurance Products) Regulations 2013 dated 18.02.2013 and (ii) Insurance Regulatory and Development Authority (Non- Linked Insurance Products) Regulations 2013 dated 18.02.2013 to make life insurance products user friendly. 
 
The provisions of the regulations are helpful to the policyholders in the following manner :
 
• Product classification is defined to bring transparency. 
 
• Minimum death benefit is prescribed to ensure that the beneficiary will get a reasonable amount on death of policyholder. 
 
• The commission is linked to the premium payment term to encourage long-term products. 
 
• Minimum Guaranteed Surrender Value in respect of individual products and the surrender penalty in respect of fund based group products are prescribed to protect the interests of policyholders and to ensure reasonable benefits to policyholders on surrender. 
 
• The surrender penalty in respect of Fund based group products is restricted to give more return to policyholders. 
 
• The norms regarding disclosure to policyholder have been strengthened to help the policyholder make an informed decision. 
 
• Better yield to the customers of variable Insurance Products through specification of limits on reduction in yield. 
 
• To encourage revival of discontinued Unit linked policies revival period is enhanced beyond the lock-in period. 
 
IRDA has further informed that the existing products which are not compliant with the new regulations have to be modified before 30th June 2013 for Group products and before 30th September 2013 for Individual products. 
 
This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today. 
 
PIB

0 comments:

Post a Comment

Now Trending

34% DA Order for Central Govt Employees wef 01.01.2022 - Latest CG Employees DA Order Jan 2022

 DA Order for Central Government Employees from Jan 2022 - Finmin Order 2022 Latest CG Employees DA Order Jan 2022 Dearness Allowance payabl...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com