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IRDAI Circular on Use and File Procedure for all products of Life, general and Health Ins

  • Regulatory Updates
  • IRDAI Circular on Use and File Procedure for all products of Life, general and Health Ins

IRDAI, vide circular bearing reference number IRDAI/ACTL/CIR/PRO/81/3/2023 dated March 31, 2023 has advised a change in the procedure for “File and Use” of the insurance products.

  • The applicability of the Circular is for all Life, General and Health Insurers.
  • The products referred to in this circular include base products as well as riders/add-ons attached to the base product.
  • The circular comes into force with effect from 1st April 2023

As per the circular:

  • The documents that are required to be submitted under the following Use and File Circulars shall hereafter be submitted to the Product Management Committee (PMC), instead of being filed with IRDAI.
  • IRDAI/ACTL/CIR/PRO/207/10/2022 dated 4th October 2022
  • IRDAI/HLT/REG/CIR/108/06/2022 dated 1st June 2022
  • IRDAI/NL/GDL/F&U/030/02/2016 dated 18th February 2016
  • IRDAI/NL/CIR/MISC/107/6/2022 dated 1st June,2022
  • IRDAI/NL/CIR/PRO/146/07/2022 dated 14th July 2022 IRDAI/NL/CIR/MISC/212/10/2022 dated 13th October 2022

The Product Management Committee of the Insurers shall be responsible for the final approval of the products.

  • It will be the responsibility of the Product Management Committee of the Insurers to ensure that the entire set of documents required under U&F Procedure are: Complete, Correct, Digitally signed, and are in compliance with the extant applicable legal and regulatory framework, and maintained by the PMC.
  • In the circular, IRDAI has reserved its rights to call for documents with respect to a few products ( identified on monthly basis from amongst all the life insurers, general insurers and health insurers ) for examination as per the following procedure:
  • The identification process could depend on factors like:
  • number of products launched during the previous financial year,
  • complaints received on the products launched/mis-selling/distribution channel,
  • news articles of aggressive selling of specific products,
  • sales volumes of the products launched,
  • rampant policy cancellations or free look cancellations,
  • or any other matter concerning products/solicitation.
  • Such documents shall be furnished by the concerned insurer to IRDAI within a period of two days.
  • IRDAI may conduct onsite examination of U&F documents.
  • Insurers to submit a certificate signed by the CEO in the standard format as specified in Annexure-A.
  • The insurers to submit quarterly report as per Annexure-B, with respect to the products launched for the first four quarters from the date of launch of the product.
  • The Insurers to upload the policy wordings/documents, sales literature, premium calculator, in their website in the chronological order of UINs, before the product is launched or within seven days of allotment of UIN, whichever is earlier .
  • Insurers to ensure that the systems, procedures, manuals and all essential infrastructure required for launching the product and maintenance of insurance policies are in place.
  • The Circular contains the format of the MDCEO Certification as referred in point 5 above as Annexure A and Quarterly report format as referred in point 6 above as Annexure B.

Source category: IRDAI

Attachments

  • /2023/179_Use_and_File_Procedure_for_Products_(3).pdf

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