Insurance Regulatory and Development Authority of India’s (Irdai) plan to permit portability in life insurance will allow customers to move to another insurer without having to let their policies lapse. But will it work?
K.S. Gopalakrishnan, managing director and chief executive officer, Aegon Life Insurance
Portability is possible only when product features are standardized. A term insurance policy should be easy to port as the new insurer will be able to easily administer the policy. A simple pension plan and a Ulip too should be easy. Other products—such as endowment plans and money back plans—could be complicated as the new insurer may not have a product with same features.
