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Irdai permits testing of products under regulatory sandbox approach

Irdai has also said that there would be defined entry and eligibility criteria as well as exit parameters for the applicants

Subrata Panda  |  Mumbai 

IRDAI to seek concrete plan from banks on opening up branch network for more insurers

The insurance regulator on Tuesday granted permission to and intermediaries to test their products under the regulatory approach for a period of six months (which can be extended upto 12 months) before launching it in the market.

"However, if the proposal covers 5,000 persons or completes Rs 50 lakhs of or any other parameter which the authority specifies, the proposal will deem to have been completed," said

The regulator has also said that the applicants be it an insurer, insurance intermediaries or any other entity who are planning to apply for the process and test their product should have a minimum net worth of Rs 25 lakhs for last three years.

Moreover, applicants can apply individually or jointly in any of the categories but if the category involves insurance product then the applicant has to partner with an insurance company. has also said that there would be defined entry and eligibility criteria as well as exit parameters for the applicants.

The regulator through the “Regulatory Approach” wants to provide a space to facilitate innovations in the insurance sector, make the insurance products more affordable and relevant for the insured and give a boost to insurance penetration.

had constituted a committee under the Chairmanship of to look into regulatory approach aspect last year. It has, now, invited suggestions and comments from all insurance, reinsurance and foreign reinsurance companies.

First Published: Tue, February 05 2019. 20:46 IST
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