Page 8 - The Insurance Times May 2021

IRDAI News

IRDAI standardizes product filing by IRDAI, the insurance draft regulations for the designing and
companies now have to submit a pricing of general insurance products
technical notes for motor
standard format for technical note, with an objective to protect the
& health insurance detailing pricing aspects of health interest of the policyholders. The

policies insurance product filing. proposed regulations provide the basic
For motor insurance, companies will framework and reflect the
In order to expedite the product fundamental principles to be followed
have to provide assumptions used in
clearance process, IRDAI has in respect of product design and
pricing the product or add-ons along
standardized technical notes for filing pricing. It also aims to ensure that the
with justification, details of how the
health and motor insurance policies so interests of policyholders are protected
that insurers can provide all necessary impact of excess and any other specific while promoting efficiency in the
feature has been allowed in pricing as
details in a prescribed standard conduct of the general insurance
format. According to IRDAI, this will well as how sub-limits or caps have business.
help to ensure uniformity amongst been considered in the estimation of
insurers in the matter of filing pricing premium rates. The IRDAI (General Insurance
Products) Regulations, 2021, which will
and product-related information for For health insurance, under the
insurance products. technical note, insurance have to apply to insurance products as well as
add-ons, are aimed at encouraging
Naval Goel, Founder & CEO, provide a description of the efficiency in the conduct of the general
PolicyX.com, stated, "The recent step methodology used in pricing and insurance business, stated the draft.
is taken to ease the price pressure justification for the choice of
from the policyholders, as there were methodology. The companies will also IRDAI said, "It has been felt necessary
to have regulations governing general
erratic hikes in the prices because of have to explain how the impact of co-
various new feature additions. As it's pay, pre-existing disease, waiting insurance products, even while having
a provision thereunder for issuance of
is already mentioned in the IRDAI period, cost of pre-insurance health
guidelines that the insurers are check-up, sub-limits, no-claim bonus, guidelines for various segments as may
be necessary."
required to submit a technical note wellness benefits, outpatient benefits
detailing pricing aspects of health and any other specific feature has been The regulations, if approved, will apply
insurance product filing, the insurance allowed in pricing. to all general insurance products and
companies will have to be answerable add-ons marketed or offered by
for every feature, which leads to the IRDAI proposes regulations general insurers.
prices increase. This will allow The proposal said, "The general
customers to make an informed and for designing & pricing of insurance package product consisting
calculative choice." insurance products of various covers/sections including
Under the consolidated guidelines on IRDAI has recently came out with Health section/s shall also be covered

8 The Insurance Times, May 2021