The Insurance Regulatory and Development Authority of India (IRDAI) has approved eight principle-based regulations at its recently held board meeting. The primary ones include Bima Sugam — an online marketplace for insurance policies, product regulations regarding the surrender charges of the insurance policies, and regulations for the protection of policyholders. How are they going to benefit the policyholders? Read here
For the protection of policyholders
“The IRDAI (Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations, 2024 consolidate eight regulations into a unified structure, focusing on several key objectives aimed at ensuring fair treatment of prospects during solicitation and sale of insurance policies and protecting the interests of policyholders throughout their engagement with insurers and distribution channels. These regulations emphasise the adoption of standard procedures and best practices by insurers and distribution channels to fulfill their obligations towards policyholders, including grievance redressal and policyholder-centric governance. Additionally, the regulations aim to promote prudent practices in risk management related to outsourcing activities by insurers. Furthermore, the regulations ensure that the opening or closing of places of business by insurers, both domestically and internationally, is conducted in a manner that prioritizes the interests of policyholders,” the regulator.Surrender value, other charges
“The IRDAI (Insurance Products) Regulations, 2024 merge six regulations into a unified framework aimed at enabling insurers to swiftly respond to evolving market demands, enhancing the ease of conducting
business, and boosting insurance penetration. These regulations promote good governance in product design and pricing, including strengthening the principles governing guaranteed surrender value & special surrender value along with disclosures thereof,” the regulator said in a press note released on March 22, 2024.
“It also ensures that the insurers adopt sound management practices for effective oversight and due diligence. Additionally, the regulations encourage the development of innovative insurance products that cater to the requirements of different segments/strata of the society and provide wider choices while also considering the interests of policyholders and maintaining regulatory compliance, thereby, fostering a competitive marketplace,” it added.
Formation of Bima Sugam
The IRDAI board approved Bima Sugam — an online marketplace for facilitating various insurance-related activities, including product showcasing, customer service, and policy portability. “The IRDAI (Bima Sugam – Insurance Electronic Marketplace) Regulations, 2024, aims to establish a Digital Public Infrastructure named Bima Sugam towards universalization and democratization of insurance as well as empowering and safeguarding policyholders’ interests and achieve the vision of ‘Insurance for all by 2047’,” the regulator said. New health insurer Galaxy Health and Allied Insurance
The regulator granted the certificate of registration to standalone health insurer Galaxy Health and Allied Insurance, which can now start operations. “The Insurance Regulatory & Development Authority of India (IRDAI) in its 125th meeting held on 19 March 2024 has granted Certificate of Registration to a new health insurer namely, Galaxy Health and Allied Insurance Company Limited to carry health insurance business in India. With this, the number of insurers operating in the health insurance segment has gone up to 7. This is the sixth registration granted by IRDAI in around one year in the Life, Non-life, and Health Segment,” the regulator said. Source Link