To fast-track the approval mechanism, insurance sector regulator Irda today re-introduced the process of automatic clearance to life insurance products. Irda said in a circular that the process "...requires the insurers 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".
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.
"Therefore, the Authority would be placing all the terms and conditions of the products approved on its website." At present, Irda approves all insurance products on File and Use basis.