IRDAI proposes changes to policy revival norms | October 30



? Cool Title, but what’s the news?

Insurance buyers are set to get substantial benefits, with the regulator proposing significant changes to revival of policies and enhancing guaranteed benefits while surrendering the cover ahead of maturity.

? Okay, but what does it mean?

The regulator Irdai has proposed to enhance the revival period to five years from the current two years and introduced guaranteed surrender value after two years from three years earlier. Irdai has sought comments from all stakeholders on the norms. It has proposed a minimum death benefit of seven times for regular premium products and 1.25 times for single premium products for all ages. Earlier, benefits varied between 5 and 10 times, depending on the age of the policyholder.

? Why should I care?

The changes introduced are in favour of policyholders. Customers can reinstate the policy within five years and will have the freedom to opt for an annuity provider after the accumulation phase. Insurers will be allowed to design individual term, group term and credit and micro insurance products that offer a range of policy terms. Source: Economic Times
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Written by

Vedant Kaushik