IRDAI enables additional options for withdrawn life cover products

IRDAI introduced new measures allowing more choices and benefits for policyholders with withdrawn life insurance products.

Effective immediately, the new rules apply to products which are no longer available for sale but still have existing policies serviced by insurers. 

As per the new provisions, insurance companies can offer new riders to the existing policyholders of withdrawn products.  As part of flexible payments, the option to change the premium paying mode can also be provided.

A reduction in interest rates for policy revivals and policy loans, if any is permitted.  Policyholders can choose how often they receive certain benefits from their policies with income benefit payments.

“With this initiative, IRDAI reaffirms its dedication to policyholders by offering greater flexibility and enhancing policyholders’ insurance experiences,’‘ the insurance regulator said.

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