Irdai eases approval norms for health, general insurers

 

Digital Desk: The Insurance Regulatory and Development Authority of India (Irdai) has given insurers permission to offer health and most other types of insurance to customers without first obtaining its approval.

The 'Use and File' or "U and F" procedure has now been extended to all health insurance products and practically all general insurance products by the regulator.

So, how does the U & F technique work? Insurers are permitted to promote certain products without first obtaining Irdai clearance. They must, however, file their product with the regulator within a specific amount of time."

Use and File approach essentially means that insurers can release new products to the market on filing with the regulator, thus avoiding a long waiting period in supplying personalised and innovative insurance products to buyers," said Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance.

What prospective purchasers should know: 

The newly enacted reforms benefit the insurance business are

Earlier, group goods were filed as U & F and retail products were submitted as 'File and Use' or F & U, explains Dr. S Prakash, MD, Star Health and Allied Insurance.

All items and add-on covers are covered by the new circular's U & F clause. This is true for both new policies and those that have been modified or revised. "Insurers will now be required to file the product within seven days of its introduction and get a UIN," he added. According to insurers, this applies to all products, including pilot and combo products.

The new criteria will assist the sector in releasing products more quickly. Insurers are also burdened with a great deal of duty as a result of this. While the regulator has granted the industry greater leeway, it has also mandated that insurers perform more responsibly. "

 

Insurers must ensure that product filing is done in accordance with board-approved U&F policy, and that product pricing is viable, self-sustaining, and affordable. To make the product effective and sustainable, premium adjustments must be based on the Incurred Claims Ratio (ICR), which ensures that insurers keep accurate data.

 

"If any insurer is found to be non-compliant, the regulator has the authority to ask them to withdraw the product and/or the U & F facility for a period of time," Prakash added.

Buyers will be able to choose from a wide range of insurance policies available in the market. as a result of the establishment of these product filing eligibility criteria.

 

However, they need to be very careful while choosing new introduced goods, particularly pilot and combo products, because insurers may withdraw the products due to insufficient sales or non-profitability, according to an expert.