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.