IRDAI clears new norms for life insurance policies, changes revival, surrender norms

The Insurance Regulatory and Development Authority of India (IRDAI) has approved new rules in the insurance sector applicable to life insurance policies. The sector is expected benefit from the move as it will ease the process of launching new products and services for customers. Ashish Vohra, CEO, Reliance Nippon Life Insurance, told Zee Business TV that, quick approval of new and standard products in the insurance sector will help us to send a good product or idea to customers in less time. The move will help us bring new products in the market with ease and speed.'' 

IRDAI has also increased the revival period of non-linked policies- for life insurance policies this has been raised to two to three years by IRDAI. Also the surrender period of the policy has been raised as per new rules. The Non-Linked policy holders will get a fixed amount on surrendering the policy after 2 years.  The customers who seek more flexibility and ones who could not afford to pay premiums in last two years can get their policy revived. The changes effected will be beneficial for not just the customers but also for the segment in the long term, explained Vohra. 

Watch this video tweet of Zee Business TV:

इंश्योरेंस रेगुलेटर #IRDAI ने लाइफ इंश्योरेंस पॉलिसी में नए नियमों को दी मंजूरी, ग्राहकों को ऑफर होंगे आसान प्रोडक्ट।@anuragshah710 @relnipponlife pic.twitter.com/1XRooyOE3o

— Zee Business (@ZeeBusiness) May 7, 2019

The regulator has also directed insurers on Tuesday to take steps for ensuring registration of all claims and quick settlement of eligible cases in cyclone-hit areas of Odisha and neighbouring states. Cyclone Fani has resulted in immense loss to property and to some extent lives in Odisha and neighbouring states.