This resolution was taken “to facilitate the industry to respond faster to the emerging market needs in terms of designing and pricing of general products and to promote efficiency in the conduct of general insurance business,,” the IRDAI mentioned.
This is a part of IRDAI’s endeavour to increase ease of doing business.
The miscellaneous insurance under the general insurance section is a singular section which requires artistic conceptualization so as to cater to the ever-evolving wants of the policyholders, the regulator mentioned.
Earlier, the products with a sum assured above Rs 5 crore might be launched with out prior approval of IRDAI. But insurers wanted regulatory approval earlier than launching products with sum assured up to Rs 5 crore.
Now, IRDAI mentioned that it has prolonged the ‘Use and File’ process, ie. launching insurance products with out prior approval, to all classes “in its sustained endeavor to promote creative innovation and ease of doing business”.
This resolution comes into power with fast impact.
This will present the important fillip to the general insurance companies for a broad-based method in designing and well timed launch of the products commensurate to the market necessities.
