Product clearance period will decrease to one month from
three months.
IRDA will be releasing the standard product
guidelines by first week of December. The regulator had sought feedback views
from insurers and has tried to incorporate some of it in the new guidelines.IRDA
is working closely with actuaries of the insurance companies and product
developers to finalize the 18 standard products.
According to the new guidelines, product
clearance period by the regulator has been reduced from 3 months to 1 month,
said an industry official aware of the development. Insurers have been lobbying for this guideline
to be implemented for a long time.
“We expect that the new guidelines will speeden
the product clearance process. This is a positive step, This way, we can know faster
whether the product is acceptable or not. We may have to re-file some products,
but we would get a decision within 30 days,” said a senior official from a top
life insurance company.
The regulator has taken this initiative to
launch standard products so that these products are easily understood by
general public.