IRDAI’s new norms to promote innovative policies: Expert

About IRDAI:

• The Insurance Regulatory Development Authority is a statutory agency established by the Insurance Regulatory Development Authority Act of 1999.
• IRDAI was founded as an independent body with its headquarters in New Delhi. In 2001, its headquarters were relocated to Hyderabad, Telangana. The Chairman and other members of the Insurance Regulatory Development Authority are appointed by the Indian Government.
• According to experts, IRDAI’s decision to permit ‘use and file’ facility for most of the insurance products will encourage insurers to come out with innovative covers quickly to the benefit of customers and also deepen the insurance penetration in the country.
• The Insurance Regulatory and Development Authority of India (IRDAI) extended the ‘use and file’ procedure for most of the life insurance products, thereby allowing insurers to launch new products without prior approval of the regulator.
• Earlier, similar relaxations were extended to all the health insurance products and almost all the general insurance products.
• According to experts, the relaxed norms for launching insurance products will also make insurers more responsible as they would be held accountable for the products which are offered in the marketplace without prior approval of IRDAI.
• It will support customer centricity and fuel product innovation, which in turn will boost insurance penetration in the country.