Irdai bats for easier exit from traditional plans; no change in returns

Draft guidelines propose higher sum as well as some bonus, if premiums are paid for two consecutive years

The Insurance Regulatory and Development Authority of India (Irdai) had recently put out draft product guidelines to review and standardise the 2013 regulations on linked and non-linked insurance products. 

Though not much has been drafted to improve the returns from policies, there are proposals to make the exit route easier for policyholders. For example, the new draft regulation has proposed guaranteed surrender values, along with any accrued bonus, if premiums are paid for at least two consecutive years in case of traditional plans, irrespective of the original policy tenure. 

In addition, there is also a proposal to increase the minimum