This decision 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 said.
This is part of IRDAI’s endeavour to boost ease of doing business.
The miscellaneous insurance under the general insurance segment is a unique segment which requires creative conceptualization in order to cater to the ever-evolving needs of the policyholders, the regulator said.
Earlier, the products with a sum assured above Rs 5 crore could be launched without prior approval of IRDAI. But insurers needed regulatory approval before launching products with sum assured up to Rs 5 crore.
Now, IRDAI said that it has extended the ‘Use and File’ procedure, ie. launching insurance products without prior approval, to all categories “in its sustained endeavor to promote creative innovation and ease of doing business”.
This decision comes into force with immediate effect.
This will provide the vital fillip to the general insurance companies for a broad-based approach in designing and timely launch of the products commensurate to the market requirements.