eServe Newsletter April 2013

IRDA to re-introduce the process of automatic clearance to life insurance products

20-Feb-2013 | Source : IRDA
IRDA has decided to re-introduce the process of automatic clearance to life insurance products. IRDA on Tuesday issued a circular stating that insurers are required to submit a copy of policy document with policy schedule under File and Use application in respect of all products filed from April 1, 2013 onwards. The IRDA had dispensed with the submission of policy document under File and Use or automatic clearance procedure in 2007. The regulator said it has re-introduced the approval of policy bond under File and Use procedure as various stakeholders of the life insurance industry approached it on the issue. Currently, IRDA approves all insurance products on File and Use basis.

SBI Life launches new online plan

16-Mar-2013 | Source : SBI Life Insurance
SBI Life Insurance has launched a new term insurance plan name eShield. It is a pure term plan which is offered online. The minimum sum assured is 20 lakh and is available with two plan options - level cover and increasing cover.  The plan also offers the option of adding the accidental death rider benefit.

Reliance Life launches new healthcare plan

21-Mar-2013 | Source : Reliance Life Insurance
Reliance Life Insurance (RLIC), part of Reliance Capital Ltd, has launched its new healthcare offering 'Reliance Life Care for You Advantage Plan'. The plan covers the entire family under family floater coverage in a single sum assured. The policy allows an insured to pay a fixed premium for a three-year policy. This premium remains fixed for the three-year period, irrespective of the number of claims taken by the insured during the validity of the policy.

IRDA approves four substantive regulations

09-Feb-2013 | Source : IRDA
At its 76th meeting convened on 8.2.2013, the Insurance Regulatory and Development Authority has approved four substantive Regulations.
  The Health Insurance Regulations have been approved and they will come into force from the date of publication in the Official Gazette. The Authority hopes that these Regulations will enable the development of a more robust consumer friendly and reliable health insurance system in the country.  
The Authority has approved revised Regulations regarding Investments by Insurance Companies. Insurance companies will now be allowed to increase their exposure in equity in a given company from the present level of 10% to a higher level of 12% and 15% depending upon the size of the Controlled Fund of any given insurer. The Authority believes that this is commensurate and appropriate given the size of funds under consideration without adversely affecting the prudential management of investments.
  The Authority has also approved the Regulations which would strengthen the Indian Institute of Insurance Surveyors and Loss Assessors and enable this important profession to further improve its professional capability and the the effectiveness with which they serve the insurance industry.  
The 4th Regulation requires a Standard Proposal Form for sale of life insurance products. This Form which is mandatory for all life insurance products sold in India after six months from the date of publication of these Regulations in the Official Gazette would require insurance companies and intermediaries to capture full details of a policyholder in accordance with the KYC norms and with a view to improving the service levels to prospective policyholders and to further minimise the chances of mis-sale.  
During the course of deliberations on Bancassurance Regulations, the Authority decided to propose certain further significant changes and has therefore decided to have further consultations with the Insurance Advisory Committee on the new elements proposed to be included before approving the Regulations.
  The Authority believes that the introduction of these Regulations and the earlier Regulations on Product Design and Reinsurance would equip the industry to better serve the needs of policyholders and will enable the orderly growth of the industry.
Apart from the above Regulations which are of a substantive nature, five other Regulations of routine nature were also considered and approved by the Authority.

IRDA releases new mortality table for life insurers

22-Feb-2013 | Source : IRDA
Irda on Thursday released a new mortality table for life insurance companies which shall be effective from April 1, 2013. According to circular issued by IRDA on its website,the new mortality table called Indian Assured Lives Mortality (2006-08) will be used for fixing premium towards new policies.

About mortality table

The mortality table denotes the rate of deaths occurring in a defined population during a selected time interval, or survival from birth to any given age.