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In an important development in the Rs.60 lakh crore life insurance industry, IRDAI has allowed life insurance companies to launch combi products under’ use and file’ guidelines.
Combi products essentially mean that a life insurance company can tie up with any general or health insurer to offer a life policy along with health or motor insurance at a single premium. For instance, LIC India can tie up with Niva Bupa to offer a life policy having benefits of health insurance as well.
In a circular issued today, IRDAI clarified that life insurers launch these policies under ‘use and file’ norms i.e. they can launch a new policy in the market and apply for approval within a certain time frame later.
Further, IRDAI said that life insurer will have to act as a lead insurer to offer combi products. This indicates that life insurance company will launch this policy by bundling it with non-life or health policies, distribute such a policy through its agency force and collect premium. This has come into effect immediately, clarified IRDAI.
Among other key developments of use and file guidelines are:
- Life insurers can launch individual and group policies in ULIPs and health insurance space
- They can add new units of ULIPs with existing ULIPs. This will also allow insurers to customize ULIPs based on risk appetite and needs of policyholders
