IRDA to take a new move

Friday 02, February, 2007 Insurance companies have a reason to be glad. The Insurance Regulatory and Development Authority (IRDA) has reduced the waiting period for life insurance companies for offering products. Initially, life insurers had to wait for a period of 30 days before introducing its products but now it has been reduced to 15 days. As per current guidelines, after the filing of products, if insurance companies do not hear from IRDA within 30 days from the date of receipt of application, insurance companies can go ahead with the launch of the products. But now, with the reduction in the waiting period, insurers can proceed with their product launch if they do not hear from IRDA within 15 days. However, this would be applicable only for products without riders except for accident benefit and permanent disability features. And in cases of lapsed policies, the revival tenure offered would be 2 years. Another condition applicable is that the products should not be altered for at least six months from the date of filing with IRDA. This new regulation will be applicable to individual products with reversionary bonus, participating & non participating plans, endowment plans, whole life plans, money back plans, term assurance plans and immediate annuities with a minimum policy term of 5 years. However, for products like ULIPs, there would be no change, the waiting period would continue to be 30 days.

[ Back to News Room ]

Back to Top^