Irda forms working group for simple products in general insurance

The authority said it was required to review the extant guidelines on F&U requirements for general insurance products

Insurance sector regulator Irda has formed a working group to review 'File & Use' (F&U) guidelines to ensure availability of simple products in the general insurance category.

The Insurance Regulatory and Development Authority (Irda) said it was required to review the extant guidelines on F&U requirements for general insurance products.

"It is felt by the Authority that a review of extant guidelines has to be undertaken to ensure that products are designed, marketed, sold and serviced ensuring that a viable, simple and useful product is available to consumers and is sustainable for insurers," says a circular issued by Irda.

Earlier in 2007, Irda had withdrawn tariff structure for general insurance products under fire, engineering, motor and workmen compensation and gave insurers authority to decide premium rates for their products.

The eight member working group will be chaired by Irda member Suresh Mathur. Among others, the working group would consist one member from the Authority and six from general insurance industry.

The working group is expected to submit its report to Member (Non-Life) in three months.