On 20 June 2023, the Insurance Regulatory and Development Authority of India (IRDAI) introduced some modifications to the existing “Use and File” Procedure for Life Insurance Products.
- Objective: To expand the scope of the Use and File procedure to facilitate the insurance industry in promoting penetration and improving the accessibility of life insurance products.
- The modifications are issued by IRDAI in the exercise of its powers under the Insurance Regulatory and Development Authority Act, 1999.
i.IRDAI has included individual and group unit-linked life and health insurance products and allowed insurers to use and file the products under the modified procedure.
ii.IRDAI has also introduced ‘Combi products’, which allow the filing of Combi products where the life insurer is the lead insurer.
- This will allow customers to access comprehensive insurance coverage under a single policy.
- The combi products also needed to comply with the existing norms set by IRDAI.
iii.The current Standardized File Identification Number (SFIN) clearance process by IRDAI is dispensed.
- Even though the insurance companies are still instructed to comply with all prudential and exposure norms as per Regulation 9 of IRDAI (Investment) Regulations, 2016, as amended from time to time, for each segregated fund and the Assets Under Management (AUMs) of Unit-Linked Insurance Plans (ULIPs)
- This can lead to quicker availability of new life insurance products in the market.
iv.IRDAI allows the addition of new unit-linked funds to existing unit-linked products.
- Thus after addition, the new unit-linked funds will be treated as existing funds for subsequent unit-linked products.
About Insurance Regulatory and Development Authority of India (IRDAI)
Chairperson – Debasish Panda
Headquarters – Hyderabad, Telangana
Establishment – 1999, Incorporated in 2000