Insurance regulator Irda has extended the deadline for implementation of new individual product regulations for the life insurance industry by three months to December 31 to enable insurers to cope with the system readiness.
After detailed examination of representations from insurance companies, it has been decided to allow the launch of products under the new regulations during extended period, Insurance Regulatory and Development Authority (Irda) said in a circular.
The new guidelines are aimed at making insurance policies more customer-friendly.
However, it said, insurance products with highest NAV (net asset value) guarantee and with fund level guarantees have to be withdrawn immediately and will no be sold from October 1.
Products where benefits are linked to any external index have also to be withdrawn.
“All the existing group policies and all the existing individual products not in conformity with the provisions of this regulation shall be withdrawn from August 1, 2013 and January 1, 2014, respectively,” Irda said in a circular.