IRDAI’s recent draft regulations on insurance policies vide the draft Protection of Policyholders’ Interests and Allied Matters of Insurers Regulations, 2024, would fortify policyholders’ rights while ensuring operational efficiency within the insurance sector, an expert said.
The genesis of these regulations stems from collaborative efforts between IRDAI and Insurance Councils, through the Regulations Review Committee (RRC).
This committee, tasked with consolidating various regulations, has proposed a unified framework to safeguard the interests of policyholders and address allied matters concerning insurers.
The proposed draft consolidates provisions from multiple regulations, including those governing the manner of premium receipt, assignment of policies, establishment of places of business, fee structures for nomination changes, issuance of e-insurance policies, outsourcing activities, and insurance advertisements and disclosures.
Rajiv Agarwal, Co-founder, Integrated Risk Insurance Brokers said, “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 further said.
IRDAI has invited feedback and suggestions from stakeholders, including insurance companies, industry professionals, and policyholders, to ensure the draft regulations are comprehensive and inclusive.
