Regulations for Standard Proposal form in Life Insurance

IRDA CIRCULAR: This is in continuation of the consultation process involving a Discussion Paper dated 18th June, 2010 regarding prescribing standards for Needs Analysis in Life Insurance and the Exposure Draft dated 31.01.12 on Guidelines on Prospect Product Matrix as a process of assessing Needs Analysis.

Feedback received from various stakeholders to the exposure draft on Guidelines on Prospect Product Matrix has been examined. The Authority now proposes regulations relating to prescription of a standard proposal form for individual policies in life insurance that shall have a section on Needs Analysis.

While not being prescriptive about any particular matrix or model, the regulations envisage requiring insurers to have in place a process and system to assess the Needs Analysis carried out for each and every proposal received and the soundness of a Recommendation about a particular product being made.

Feedback on the draft regulations may be sent to [email protected] on or before 15th May, 2012