Circular

Ref: IRDAI/LIFE/CIR/MISC/POS/185/08/2017

Date: 08-08-2017

To All the Life Insurers,
Re:  Modification to Guidelines on Point of Sales (POS) – Life Insurance Products
Reference is invited to –

1. Section 2 (i) – ‘Categories of POS Products’ ,  wherein the description of categories of POS Products is provided   and

2. Annexure –I (a) – “Pure Term Insurance Product with or without return of Premium” wherein the maximum Limit of Sum Assured under the Pure Term Product was capped up to Rs 25 Lakhs (excluding ADB Rider) Only

of   the Guidelines on Point of Sales (POS) – Life Insurance Products bearing Ref. No. IRDA/LIFE/GDL/GLD/222/11/2016 dated November 7, 2016.
Based on the feedback received from the insurance industry, it has been decided by the competent Authority

a. to include  the Non-Linked, Non-Par Health Insurance products with fixed Benefits under the Sec 2(i) categories of POS products. The product parameters for the same are mentioned in Annexure-A attached to this Circular.  All the other provisions in the referred Guidelines are applicable to the POS Health Products  also.

b. to relax the upper limit of ‘Sum Assured on Death’ under Pure Term Life Insurance Product under Annexure- I (a) as above and hence the modification be read as follows:

Sum Assured on Death:
Maximum – No Limit 
(subject to Non – Medical underwriting only)
This Circular is issued with the approval of the competent Authority and comes into force with immediate   effect.
(Nilesh Sathe)
Member (Life)
 
Encl  : Annexure – A
ANNEXURE – A
OS — Health Insurance product ( Fixed Benefit only )
 
Non- Linked , Non –Par , Non- Medical Product only will be allowed For Individual / Family Floater Policies only   (Not to be sold as Group insurance )
Product Features/ Parameters / Eligibility  :
Age at entry 
Min — 90 Days
Max — As per extant Health Regulations
Maximum Age at Maturity
As per extant Health Regulations
Policy Term
Min – 5 years ,
Max – As proposed in F&U Application and approved by the Authority
Sum Assured 
Minimum – As proposed under the product
Maximum –  Rs. 15 Lakhs ( Individual )
 —   Rs. 20 Lakhs { Floater and Individual }
( Sum Assured would be in the multiple of Rs 5000 only )
Mode of Premium
Annual / Single
Grace period
As per extant regulatory norms
Revival period
As per extant regulatory norms
Waiting Period
( For any disease)
 Allowed Not more than first 90 Days  from the date of acceptance of risk
 Benefits :
( On diagnosis of a Disease / contingency covered )
During waiting Period
( if any )
After expiry of waiting Period
— Refund of 100% of premium Paid
—  Full Sum Assured
Maturity Benefits
As proposed in F&U application and approved by the Authority
Underwriting Conditions
Only Non-Medical underwriting
Surrender Value
As per approved F&U / Extant regulatory provisions
Commission
As per approved F&U application
Other Features / Conditions 
As per extant regulatory provisions
Exclusions
As approved under F& U
Pre- existing Disease
Not Covered / as per extant regulations
Portability
Not Allowed
Change in Sum Assured
(at any time during the term or at the time of Renewal ) 
Not allowed
Post Diagnosis Survival Conditions /Period
As approved under F& U
Reinstatement / Renewal of Sum Assured
100%

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