IRDA today asked all life insurers to adopt a standard form for policyholders seeking insurance cover, a move which is aimed at bringing in uniformity and transparency.
The 'Standard Proposal Form' as notified by the Insurance Regulatory and Development Authority (IRDA), contains column for personal information and suitability analysis for the policyholder.
"The objective of this regulation is to provide for a standard proposal form for individual policies in life insurance that has an inbuilt flexibility for seeking specialised information that is product specific to a particular product category," IRDA said in a notification.
The new regulations will require insurers to have in place a process and system to assess the needs analysis' carried out for each and every proposal received and the soundness of a recommendation about a particular product.
The regulation applies to all individual policies issued by life insurance companies, irrespective of segment and type of product.
The 'Standard Proposal Form' as notified by the Insurance Regulatory and Development Authority (IRDA), contains column for personal information and suitability analysis for the policyholder.
"The objective of this regulation is to provide for a standard proposal form for individual policies in life insurance that has an inbuilt flexibility for seeking specialised information that is product specific to a particular product category," IRDA said in a notification.
Also Read
These guidelines has come into effect from February 16, 2013, the regulator said.
The new regulations will require insurers to have in place a process and system to assess the needs analysis' carried out for each and every proposal received and the soundness of a recommendation about a particular product.
The regulation applies to all individual policies issued by life insurance companies, irrespective of segment and type of product.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%