Penetration of Insurance Policies; IRDA to Come-Out With a New Policy Giving Automatic Clearance to Standard Life Insurance Products and Relax Investment Guidelines to Encourage Flow of Funds into Infrastructure Sector

The Union Cabinet today approved necessary official amendments in the Insurance Laws (Amendment), Bill 2008, pending in the Rajya Sabha, with such drafting and consequential changes, if any, in consultation with the Legislative Department.

The Government of India has enacted the Right to Information Act, 2005 (http://www.persmin.nic.in) which has come into effect from October 13, 2005. The Right to Information under this Act is meant to give to the citizens of India access to information under control of public authorities to promote transparency and accountability in these organisations. The Act, under Sections 8 and 9, provides for certain categories of information to be exempt from disclosure. The Act also provides for appointment of a Chief Public Information Officer to deal with requests for information.

The Insurance Regulatory and Development Authority has introduced an online application that enables the user to compare coverages, exclusions etc. under non life insurance products currently being sold by different insurers in the market. The application currently lets users to browse through the different features of the products so as to enable them to decide that which products suits to them in the present scenario and in the future as their needs change over a period of time. In other words, this application has been developed with the objective of providing a mechanism for consumers/prospects to make informed decisions by comparing features of insurance products A user can access the information as follows. Please go to:

IRDA has launched its Consumer Education Website, which provides useful information for the benefit of policyholders and prospects. The sections include tips on buying insurance, standard claim procedures/documentations, Dos and Don’ts for a policyholder, general alerts, dealing with intermediaries and FAQs

‘Orphan life insurance policies’for the purpose of these Guidelines, means the policies initially effected by an individual insurance agent whose services were subsequently terminated or removed or deleted from the rolls of the insurer excluding those policies to which the effecting agent is entitled to renewal commission under provisions of Section 44 of the Insurance Act. The policies that are considered eligible under section 40(2A) of Insurance Act also do not fall under the purview of this definition.

The IRDA had issued guidelines for pension products vide references 1st and 2nd cited. Insurance companies have expressed certain concerns on the provisions in the cited Circulars and have also sought certain clarifications. In view of the above, the following clarifications are issued:

While the decision to buy life insurance may seem simple and straightforward, the biggest decision for most first-time insurance buyers should be ‘how much’ rather than ‘why’. The amount of cover matters even more for buyers who have dependants: too little will place these family members under pressure in unforeseen circumstances.

The Authority is in the process of implementing a module which would enable online submission of applications for enrolment/grant of fresh/ renewal license to Surveyors and Loss Assessors. In this connection all existing licensed Surveyors and Loss Assessors (Individual and Corporate) and Trainees enrolled with IRDA w.e.f April 2011 are required to provide the following information in the relevant form annexed to this circular, within 15 days:-

Circular no. IRDA/AGTS/CIR/GLD/120/05/2012 The Authority has issued standard instructions and guidelines applicable for approval/renewal of agents training institutes vide Ref: IRDA/AGTS/CIR/GLD/269/12/2011, dated 7th December, 2011.