Page 39 - The Insurance Times August 2024

IRDAI Master Circular on Life Insurance

Products

Introduction 5. Free Look Period:
o Policyholders have a 30-day period to review the
The Master Circular on Life Insurance Products, issued on
June 12, 2024, by the Insurance Regulatory and policy and cancel if dissatisfied, ensuring customer
satisfaction and trust.
Development Authority of India (IRDAI), consolidates various
guidelines and regulations to streamline the life insurance 6. Nomination and Assignment:
sector. It aims to enhance transparency, compliance, and o Easy processes for nomination, change of nominees,
customer-centric practices. and policy assignment either wholly or in part.
7. Grace Period:
Key Sections and Provisions o A grace period of 15 days for monthly premium
Section I: General Information for the payments and 30 days for other payment
frequencies.
Policyholder/Prospect/Customer
1. Product Availability: 8. Policy Splitting:
o Splitting policies should not result in additional
o Insurers must offer a variety of products and riders
catering to different customer needs, age groups, costs to policyholders.
regions, and occupational categories, including 9. Non-Contestability:
provisions for persons with disabilities. o Policies are non-contestable after three years from
the date of issuance, commencement of risk, or
2. Customer Information Sheet (CIS):
revival, providing security to policyholders.
o A mandatory CIS must accompany each policy,
detailing basic features, benefits, exclusions, claims 10. End-to-End Technology Solutions:
procedure, policy servicing, and grievance redressal o Insurers must implement technology solutions for
mechanisms in simple language. efficient policy servicing and claim settlement.
3. Benefit Illustration: 11. Training:
o Customized benefit illustrations must be provided o Regular training for intermediaries, distribution
at the point of sale, signed by both the policyholder channels, and employees on products, regulations,
and the insurer's representative, ensuring clear and service standards.
communication of policy benefits. 12. Grievance Redressal:
4. Key Features: o A robust system must be in place, including a
grievance portal/app. Response letters must
o Clear statements on survival benefits, death
include the insurance ombudsman's contact details.
benefits, surrender benefits, and options such as
partial withdrawal, settlement options, and top-ups 13. Implementation of Ombudsman Awards:
must be included. o Compliance with ombudsman awards within 30

36 August 2024 The Insurance Times