Page 40 - The Insurance Times August 2024

days, with penalties for delays, ensuring timely Section V: Product Approval Process
resolution of grievances. 1. Product Filing:

o Detailed product filing requirements, including
Section II: Implementation of IRDAI (Insurance certifications and benefit illustrations, ensuring
Products) Regulations 2024 regulatory compliance.
1. Product Compliance:
o Existing products must comply with new regulations Section VI: Unique Identification Number (UIN)
by September 30, 2024, or be withdrawn. 1. UIN Allocation:
2. Product Governance Framework: o Process for obtaining and maintaining UINs for
o Insurers must have board-approved policies for products, ensuring unique identification and
product design, pricing, underwriting, and tracking.
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3. Product Management Committee (PMC): Section VII: Modifications to Withdrawn
o The PMC must ensure compliance with product- Products
related regulations and maintain relevant records. 1. Product Modifications:
o Guidelines for modifying withdrawn products and
Section III: Additional Provisions on Pricing offering them as new products, ensuring updated
1. Fair Pricing: compliance.
o Premium rates and charges must be fair,
reasonable, and based on actuarial principles. Section VIII: Application Forms and General
2. Group Product Pricing: Instructions
o Discounts and loadings for group products must be 1. Form Requirements:
based on objective criteria, avoiding discretionary o Detailed instructions for application forms and
practices.
required certifications, ensuring standardized
documentation.
Section IV: Other Provisions
1. Policy Classification: Section IX: Customer Information Sheet (CIS)
o Clear classification of products as participating/non- 1. CIS Format:
participating, linked/non-linked, etc.
o Standard format and requirements for the CIS,
2. Premium Payment Options: ensuring consistency and clarity for policyholders.
o Various options for single, regular, and limited
premium payments.
Section X: Repeal
3. Fraud and Misstatement:
1. Repeal of Previous Guidelines:
o Policies treated as per Section 45 of the Insurance
o This circular supersedes previous guidelines and
Act, 1938, to prevent fraud and misstatements.
circulars related to life insurance products,
4. Policy Loans: consolidating regulations.
o Non-linked savings products must offer policy loans
based on surrender value, providing liquidity to Conclusion
policyholders.
The Master Circular on Life Insurance Products provides a
5. Surrender Value: comprehensive framework for regulating life insurance
o Guaranteed Surrender Values (GSV) and Special products in India. It emphasizes transparency, fairness, and
Surrender Values (SSV) must be fair and reasonable.
compliance, ensuring customer-centric practices and robust
6. Annuity Products: governance. Insurers must adhere to these guidelines to
o Various annuity options must be provided, enhance policyholder trust, streamline operations, and
maintaining minimum guaranteed annuity rates. maintain regulatory compliance.

The Insurance Times August 2024 37