The Insurance Regulatory and Development Authority of India (IRDAI) on March 20, 2024, issued a notification regarding the Insurance Regulatory and Development Authority of India (Insurance Products) Regulations, 2024.
This shall come into force on April 01, 2024.
The following has been stated namely: -
• It aims to enable the insurers to respond swiftly to market needs, innovate products, enhance ease of doing business, ensure good governance in product design and pricing, and maintain sound management practices to protect policyholders' interests.
• It specifies that the insurers shall establish Board-approved policies encompassing product design, underwriting, advertising, and overall product management, with oversight entrusted to a Product Management Committee responsible for policy implementation and adherence.
• It states that the insurer shall ensure that approved insurance products are launched only after the Product Management Committee confirms the presence of necessary processes, infrastructure, and controls for seamless operations from policy issuance to claim settlement
• It also specifies that the Unit linked insurance products shall operate by offering segregated funds, each with defined asset categorization and risk profiles, where premiums, after deduction of allocation charges, are used to allocate units in chosen segregated funds at their Net Asset Value (NAV).
[Notification no. - IRDAI/Reg/8/202/2024]
