The Insurance Regulatory and Development Authority is reviewing its decision to cap the premium on riders at 30 per cent of the tariff for the base product.
Sources said IRDA chairman N Rangachary has asked the chief actuary of the insurance regulator to take a relook at the decision following representations from ICICI Prudential and HDFC Standard Life.
Private insurance companies want the cap be removed altogether or the premium on riders as a percentage of the total premium be enhanced significantly from the present 30 per cent.
The regulator, as part of policyholder protection norms, had set the limit on riders, which is expected to affect the sales strategy of India
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