IRDAI introduces new norms for ULIP and non-linked products

IRDAI has recently issued new norms for life insurance products inclusive of ULIP and non-linked products. According to the new rules, the minimum death benefit in non-linked policy has been decreased from 10 times to 7 times. In non-linked policy, the customer will get a fixed amount in case of the customer surrenders the policy after two years. The revival period for the non-linked policy has been increased from two years to five years. Experts commented that the changes in rules of life insurance products are going to help the customers in the long run. The minimum duration for a single policy has been fixed at five years. The new rules underscored that the customers will be allowed to withdraw 25% of the insured sum from pension products. However, this can be done only in the time of emergency like serious illness, marriage and education of children. If a customer wishes to buy ULIP with rider then they can take permission for extra premium. In ULIP policy, the customers will be allowed to add several riders including critical illness by paying extra premium. Presently, the companies have the option to reduce the unit if a customer takes rider in ULIP policy. In May, IRDAI had approved new rules in the insurance sector applicable to life insurance policies. It is expected that the move would benefit the sector as it will ease the process of launching new products and services for customers.