IRDA may reduce ULIP approval time from 30 days to 3 days

Hello everyone our InsuranceMinds is here with the latest news regarding Insurance Sector.

Good news to the people of India that IRDA(Insurance Regulatory Development Authority) is going to reduce the ULIP(Unit linked Insurance Policies) approval time from 30 days to 3 days.

In general IRDA takes 30 days to approve any product but Insurers expect it to come down to 3 days in case of existing products. IRDA called up for a meeting on September 9 for proper implementation of new rules. Regulator formed a commitee headed by the Life Insurance Council Chairman SB Mathur, chief actuaries of few insurance companies and chief executives of few life companies.

An actuary of a life insurance company said that insurers would take the issue to the regulator and it was likely to reduce the timeline of process as it did in 2006 when it came out with fresh guidelines on Ulips.

In 2006, when Irda had changed Ulips guidelines mainly imposing sum assured at five times the premium and three-year lock-in period, it approved products in 15 days. All existing unit-linked products will have to comply with the revised guidelines from January 1, 2010, and therefore, these products will have to be re-filed by December 31, 2009.

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