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So far, insurance companies were allowed to launch miscellaneous insurance of sum assured of over Rs.5 crore without taking any approval. With this, insurance companies can launch policies with sum assured of less than Rs.5 crore without seeking any regulatory approval.
In a press release, IRDAI said, “Now, IRDAI in its sustained endeavor to promote creative innovation and ease of doing business in the Indian Insurance Sector, has extended the ‘Use and File’ procedure, i.e. launching without approval, to products falling under Miscellaneous line of insurance with a sum assured up to 5 crores also.”
It further said, “With this move, all general insurance products are now permitted to be filed under ‘Use and File’ procedure and can be launched without any prior approval. This will provide the vital fillip to the general insurance companies for a broad-based approach in designing and timely launch of the products commensurate to the market requirements and serve the policyholders effectively, furthering the insurance penetration in India.”
Miscellaneous insurance is customized insurance product that aims to cover risks unique to a company or an individual.