Irda makes way for product approvals in one week

Insurance regulator has till now cleared 50 products under the new guidelines

Products sent for re-filing may now be approved in less than 10 days. The Insurance Regulatory and Development Authority (Irda) officials said they had ensured products 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 regulator had notified changes in the traditional product guidelines. This include 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 July 1 and individual products is October 1.

“We have put out all details on our 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,” said a senior Irda official. The official added the regulator would employ additional people to fast-clear the continuous flow of products re-filing.

Irda norms meant that after October 1, existing products of life insurers cannot be sold to customers if they are not in tandem with the regulatory changes. Life insurers are now re-filing products ensure that they get the approvals on time and have a complete product portfolio by October. “We have been assured by Irda that all products that are filed will be cleared in a week or less if they meet all criteria,” said a senior official of a life insurance firm. The regulator is also considering the request of life insurers to approve priority products. The Irda official said 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 per cent of existing traditional products coming for re-filing, it is estimated by life insurers that almost 40-50 products could be approved in a month.