The regulator has taken the initiative to help the general public understand the products easily
IRDA is planning to launch jargon free insurance policy documents. “We want to make the policies more user friendly so that it is easy for common people to understand the product details and other disclaimers easily, “said Sriram Taranikanti, Executive Director, IRDA.
The policy document will be also available in regional languages.Besides simplifying policy documents, the regulator will also issue standard products, i.e. simplified products for general public.
The regulator has also set up a committee to deliberate on the issue of introducing sub- broker system. A committee of 11 members from life insurance council, general insurance council and IRDA has been formed to look into it.
The committee is to consider introduction of a retail broking system in the insurance space in India. It would also look into the manner in which the retail broking system could operate as sub-brokers and the requirements of qualifications and licensing. Also, the committee would consider and recommend the draft agreement that should be entered between the brokers and retail sub-brokers if such is the recommendation.
In order to increase insurance penetration in semi urban and rural areas, IRDA observed that the presence of intermediaries is essential.“The issue of sub-broking is under consideration of the authority for quite some time. After considerable deliberations on the issue of sub-broking, it has been decided to constitute a committee to examine various issues relating to sub-broking and submit their report to the authority for consideration,” said IRDA in an order. The committee has to submit a report by 31st January.