Page 58 - Insurance Times February 2021

De-notification of All India Fire Tariff (AIFT), Questions section. We suggest that insurers have a

2001 for certain risks and Introduction of separate team to address queries and doubts of
policyholders and the general public.
standard products and guidelines for iv. Insurers should undertake the necessary changes
Dwellings, Micro and Small Businesses in their IT systems to launch the products with

IRDA/NL/GDL/MISC/006/01/2021 effect from 1st April, 2021.
Date:04-01-2021 v. Various other aspects such as changes required
from the perspective of Reinsurance, Accounting
1. The process of bringing the Fire and Allied Perils Insurance etc are to be addressed as well.
business out of the ambit of the All India Fire Tariff, 2001 6. The Authority will be organizing a webinar on the
which began in 2006-07 and 2007-08 with de-tariffing of subject for all insurers shortly, the details of which will
the pricing aspect, will stand completed with effect from be intimated separately.
1st April, 2021 for certain businesses, namely dwellings and
micro level and small level enterprises as detailed in 7. Questions, if any, may be addressed to nl-
Notification F.No. IRDAI/Non-Life Insurance/5/171/2020 products@irdai.gov.in
dated 28th December, 2020 attached.
Please acknowledge and confirm having noted the contents
2. With effect from 1st April, 2021, Fire and Allied Perils of this communication.
Insurance for these businesses shall be governed by the
Authority’s Guidelines bearing Ref. IRDA/ NL/GDL/MISC/ (Yegnapriya Bharath)
004/01/2021 and Ref. IRDA/NL/GDL/MISC/005/01/2021 Chief General Manager (Non-life)
respectively, both dated 4th January, 2021, as attached.
3. The Guidelines prescribe standard products under the Constitution of Health Insurance Advisory
Retail category for the three identified segments. Committee
4. Insurers shall carry out the necessary preparatory work IRDAI/HLT/ORD/Misc/010/01/2021
to transition to the new products replacing the current Date:13-01-2021
Standard Fire and Special Perils (SFSP) policy for the
identified categories. Needless to mention, the SFSP 1. Health Insurance in India has grown significantly in
policies issued upto 31st March, 2021 shall continue till the recent years and is expected to continue in the coming
expiry of the respective policy periods at which point they years. Insurance Industry is offering various products/
shall be replaced with the new products as applicable. services to cater to the needs of the society and also
5. Transition to the new products would entail the bringing in innovative products/services regularly.
following steps to be taken by insurers: 2. IRDAI has taken various steps to ensure orderly growth
i. Follow the product filing procedure set out in the of the Health Insurance Industry, improving efficiencies
Product Filing Guidelines as well as the respective of health insurance system and protect the interests of
specific guidelines for the various products that will the policyholders.
come into effect from 1st April, 2021. The filing
shall be carried out through the Business Analytics 3. In this background, it is decided to constitute a
Project (BAP). committee of experts to advise the Authority on various
aspects with the following Members:
ii. Ensure that all agents, intermediaries and other i. Dr Nachiket Mor, PhD, Visiting Scientist, The
applicable distribution channels are made fully Banyan Academy of Leadership in Mental Health
aware of the three products and appropriate
training is given to them, apart from making ii. Dr A.K. Chand, Professor and Neurosurgeon,
available the required literature. Bangalore
iii. Create awareness amongst policyholders and the iii. Dr B.K. Mohanti, Former Professor and Oncologist,
general public about the products. Apart from AIIMS
communicating one to one as may be necessary iv. Dr K. Hari Prasad, Anaesthetist, Hyderabad
with the policyholders, insurers should display the v. Dr Kaushik Mukherjee, Cardiothoracic and Vascular
products on their website with a Frequently Asked Surgeon, Kolkata
The Insurance Times, February 2021