IRDA is working on a framework to approve products under use-and-file regime to expedite the introduction of new products in market. IRDA Chairman TS Vijayan said, “We have received recommendations from both life and general insurance companies for implementation of use-and-file regime. We have asked them to suggest the type and wordings of the products. Once this is standardized, the use-and-file method can be used for product approvals. This will ensure faster introduction of products,” said Vijayan.
Presently, IRDA follows file-and-use route to approve the products in which insurers have to file the products with the regulator before launching it in market. The use-and-file regulation will enable them to launch products in market based on standardized norms prior to its approval. They can seek its approval later.
During the recent IRDA seminar on ‘Policyholder Protection and Welfare’ organized in Mumbai, the Chairman urged insurers to develop simple, reasonably priced and innovative products so that people could understand easily the utility of products. It will also help to reduce policyholder’s grievances, he added. He also urged insurers to take steps to curb fraud in health insurance.
Vijayan stressed on the need to use common service centers to spread awareness among people in rural areas. He also stressed the need to bring professional and active advisers in the distribution market.
Meanwhile, IRDA has launched a mobile version of its consumer education website and released a documentary file on IRDA initiatives.