IRDA chief J Hari Narayan hopeful that parliament would soon pass the bill to hike FDI in insurance to 49%.
In order to curb mis-selling, the regulator has asked the insurance companies to form a standard proposal form for sale of life insurance products. The form will require insurance companies and intermediaries to capture full details of a policyholder. This will also help the insurance providers to improve the service levels offered to prospective policyholders and also minimize the chances of mis-selling, shared J Hari Narayan.
This form will be mandatory for all life insurance products sold six
months after the date of publication of these regulations in the official
Gazette.
Speaking to Cafemutual, the IRDA chief was hopeful that the bill to hike the FDI stake in insurance to 49% would be passed in the forthcoming session of parliament.
IRDA has also revised investment guidelines and according to the
new regulation, insurance companies will now be allowed to increase their
exposure in equity in a given company from the present level of 10 percent to a
higher level of 12 percent and 15 percent depending upon the size of the
controlled fund of any given insurer. IRDA believes that this is commensurate
and appropriate given the size of funds under consideration without adversely
affecting the prudential management of investments.The traditional definition
of controlled funds includes only non-unit linked funds and shareholder funds.
J Hari Narayan said, “The revised investment norm is a better
option now for small, mid- and large-sized insurers in line with their scale of
funds.”