Listen to this article
IRDAI said that the new guidelines under use and file norms will make product approval easy and bring innovation in the life insurance market.
Recently, IRDAI has allowed life insurance companies to launch combi product and group ULIPs under use and file norms i.e. without taking prior approval of IRDAI.
Among the new norms, introduction of combi products under use and file norms is the most substantial development. 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 press release, IRDAI said, “Now, the life insurers can launch these products without prior approval, enhancing ease of doing business and encouraging swift response to the market demands. This will boost innovation in the products resulting in better choices for the customers.”