Irdai's regulatory changes likely to make insurance products more appealing

Now policies will acquire a surrender value after two premiums have been paid

After 2013, the Insurance Regulatory and Development Authority of India (IRDAI) has now once again come out with wide-ranging changes to product regulations. Most of these changes, according to experts, are pro-customer and will enhance the attractiveness of insurance products vis-à-vis those offered by mutual funds, National Pension System (NPS), and so on.

Non-linked or traditional policies  

Surrender value and revival period hiked: IRDAI has reduced the time after which a traditional policy acquires a surrender value. Earlier, if a policy’s premium payment term was 10 years or more, it acquired a surrender value after three premiums had been paid. If the