IRDAI’s latest draft regulations on insurance coverage insurance policies vide the draft Protection of Policyholders’ Interests and Allied Matters of Insurers Regulations, 2024, would fortify policyholders’ rights whereas making certain operational effectivity inside the insurance coverage sector, an knowledgeable mentioned.
The genesis of those regulations stems from collaborative efforts between IRDAI and Insurance Councils, by the Regulations Review Committee (RRC).
This committee, tasked with consolidating varied regulations, has proposed a unified framework to safeguard the pursuits of policyholders and handle allied issues regarding insurers.
The proposed draft consolidates provisions from a number of regulations, together with these governing the way of premium receipt, task of insurance policies, institution of locations of enterprise, payment constructions for nomination modifications, issuance of e-insurance insurance policies, outsourcing actions, and insurance coverage commercials and disclosures.
Rajiv Agarwal, Co-founder, Integrated Risk Insurance Brokers mentioned, “these regulations represent a significant step towards balancing the interests of policyholders and insurers, fostering transparency, and promoting digital adoption within the industry.”
“The extended free look period will address the problem of mis-selling of insurance policies which would also increase the persistency ratio. The consolidation of eight regulations under one roof will reduce the complexity in compliance for all the stakeholders,” he added.
“The regulation on assignment of the policies also brought under the current regulations, which would help market participants to come out with new and innovate products related to assignment of policies and how that can be a game changer in future,” he additional mentioned.
IRDAI has invited suggestions and strategies from stakeholders, together with insurance coverage corporations, trade professionals, and policyholders, to make sure the draft regulations are complete and inclusive.
