Page 40 - Life Insurance Today January-June 2020

Circular

IRDAI Circular

Clarifications/Modifications to the boundary conditions as applicable to POS Life
products, under existing provisions of "minor
Master Circular on Point of Sales modification", enclosing KFD. The Waiting Period

Products and Persons - Life Insurance clause, if applicable, shall continue to be made
part of proposal form as well as KFD. The minor
dated 2nd December, 2019
modification should also contain the certificate
6th March, 2020 of CEO and Appointed Actuary of the Life Insurer
that the existing product meets the applicable
After examining the requests of certain Life Insurers and parameters mentioned in the Annexure II to the
representation of Life Insurance Council on the Master Master Circular.
Circular on Point of Sales Products and Persons - Life 16.2 The Insurers shall ensure adequate IT systems
Insurance (hereinafter referred to as "Master Circular") ref and internal controls so that POSP-LI sell policies
No. IRDAI/LIFE/CIR/MISC/215/12/2019 dated 2nd December,
only upto the allowed POS Life product
2019, the following clarifications/modifications are issued by parameters. IT systems shall also capture the POS
exercising the powers vested under Clause 27 of the Master Life policies sold through regular non-POS
Circular with immediate effect.
channels. Insurers shall submit a certificate
stating that their existing IT systems and internal
1. Clause 26 of the Master Circular is substituted by the
controls are in compliance to these Guidelines,
following:
signed by CEO and Appointed Actuary both in the
In cases of other than Single Premium mode, where
case of minor modifications and File and Use
premium paying term (PPT) is different from the policy
application in case of new products where POSP-
term (PT) -
LI is also part of distribution channel. No change
(i) PPT shall not be less than five years. in POS Agency Code should be allowed once the
(ii) The PPT being different from policy term shall be policy master record is created except for orphan
clearly communicated to the prospect at the Point policies in which case change may be allowed
of Sale and in KFD. after following due process.
2. Clause 16 of the Master Circular is substituted by the 16.3 The gap of at least one year from the last
following: approval/modification of the product mentioned
16.1 The existing Non-POS products which meet the in the Circular "Use and File procedure for certain
parameters of the allowed categories of POS Life modifications under existing products and riders
Insurance products may be filed, subject to the offered by Life Insurers" bearing No. 124 dated

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40 January - June 2020 Life Insurance Today