IRDAI allows combi products under use-and-file system

In a significant move, the IRDAI has allowed insurance companies to launch individual and group ULIPs (unit linked insurance plans) and combi plans — combination of life and health insurance plans — without seeking prior approval from the regulator.

Combi products will be offered under the use-and-file procedure without the prior nod of the insurance regulator.

According to IRDAI, in combi products, life insurer is a lead insurer and such Combi products should comply with the extant norms. “Based on the feedback from Industry and in order to facilitate the insurance industry to promote insurance penetration, it has been decided to further expand the scope of current use-and-file procedure,” the regulator said.

With the IRDAI now allowing combi product offerings, life and non-life companies can offer bundled products. Insurers can offer term insurance and health insurance covers through the same product, thereby easing the process for policyholders.

The regulator has also decided to do away with the Segregated Fund Identification Number (SFIN) clearance process for Ulips, the circular said.

Sumit Rai, MD & CEO Edelweiss Tokio Life Insurance, said, “This is a continuation of a series of steps that the regulator has taken to strengthen the insurance penetration in the country. This modification will enable insurers to increase their go-to-market speed and in turn, help them stay in sync with the dynamic demands of today’s customers.”