How many life insurers are registered with IRDAI?
There are 24 Life Insurance companies registered with IRDAI.
How many standard life insurance products are available?
There are two standard life products available in the market.
They are (i) Saral Jeevan Bima – standard term life insurance product and (ii) Saral Pension – An immediate annuity plan
How many life insurers are listed as on date?
Please refer to the following section of Website of the Authority
irdai.gov.in>> Consumer Affairs>. List of Licensed Insurance entities>> List of Life Insurers>>
How many total life insurance products are available
Please refer to the following section of Website of the Authority
irdai.gov.in>> Consumer Affairs>. Products offered >> List of Life products>>
How many products are withdrawn by life insurers
Please refer to the following section of Website of the Authority
irdai.gov.in>> Consumer Affairs>. Products offered >> List of Life products>>
What is grace period in a life insurance policy?
Grace period is a period of 15 days for monthly modes and 30 days for yearly, half-yearly and quarterly modes available to the policyholder, from the date of the first unpaid premium, to pay the renewal premiums and keep the policy alive. During the grace period, the insurance coverage will be available as per the terms and conditions of the policy.
What is discontinued life insurance policy?
If the policy is discontinued by not paying the renewal premiums before the expiry of grace period, the policy is governed by the discontinued policy conditions, which will be mentioned in the terms and conditions of the policy.
Whether the life insurance policy benefits will remain in force during the grace period?
Yes, the policy benefits will remain in force during the grace period and the same will be mentioned in the applicable terms and conditions of the policy document.
What is freelook period in life insurance policies?
As a policyholder, you can examine the insurance policy and opt out if you are not satisfied with any of the terms and conditions mentioned in the policy within 'free look' period of 15 days (30 days in case of electronic policies) from the date of receipt of policy document, by stating the reasons for your objection.
In case you opt out, the premium paid will be refunded after deductions for expenses like those for a medical examination, cost of proportionate risk cover, stamp duty, etc.
If it is a unit linked insurance policy (ULIP), in addition, the insurer can repurchase the units at the price on the cancellation date
What is the procedure to make a complaint?
Policyholders who have complaints are required to first approach the Grievance/Customer Complaints Cell of the concerned insurer. If you do not receive a response from insurer(s) within a reasonable period of time or dissatisfied with the response of the company, you may approach the Grievance Cell of the IRDAI or the Insurance Ombudsman. In case the claimant is not satisfied with the decision of Ombudsman, appeal can be filed at the appropriate judicial forum like civil courts.
Who can make a complaint to the Insurance Ombudsman?
If you have an Insurance Policy on personal lines, group insurance policies, policies issued to sole proprietorship and micro enterprises and have a grievance against an Insurance Company and their agents and intermediaries, then complaint can be filed by Policyholder or claimant/legal heirs, nominee or assignee.
What is the eligibility to approach insurance ombudsman?
One can approach Insurance Ombudsman with a written complaint only if the insurance company or insurance broker have rejected the complaint, not resolved it to the satisfaction of the complainant or not responded to it at all for a period of one month and where the value of the claim including expenses claimed is not above Rs 30 lakhs.
How to buy insurance policy?/what are the things to be kept in mind while purchasing the policy?
(i) Buy insurance policy from a licensed insurance company.
(ii) Buy insurance policy from only licensed agents/intermediaries/online
(iii) Examine the benefits of different policies issued by the Insurers
(iv) Understand the benefits and exclusions of the policy
(v) Select the right policy
(vi) Provide complete material information in the proposal form like personal, family, health, contact details, etc.
(vii) Pay the premiums
(viii) After receiving the policy document, go through the same to understand its terms and conditions
(ix) Any discrepancies need to be brought to the notice of the Insurance Company immediately.
(x) During the policy term, pay your renewal premiums regularly and pdate your bank and personal details, if there is change, for hassle free claim settlements.
How many types of life insurance policies are available?
Broadly the life insurance policies are categorized into two types – (i) Traditional plans and (ii) Unit Linked Insurance Plans (ULIPs).
Traditional policies offer in-built guarantees and define maturity benefits through variety of products such as guaranteed maturity value. The investment risk in traditional life insurance policies is borne by life insurance companies. These policies are ideal for policy holders who are not market savvy and do not wish to take investment risks.
ULIPs, on the other hand provide a combination of risk cover and investment. In these policies, the investment risk is borne by the policyholder. More importantly they offer a flexibility to decide your risk taking profile.
What is a ULIP?
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of risk cover and investment.
In a unit linked insurance policy, the investment risk is borne by the policyholder.
What is a unit fund?
The allocated (invested) portions of the premiums, after deducting all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders, are pooled together to form a Unit fund.
What is a unit?
Unit is a component of the Fund in a Unit Linked Policy
Whether IRDAI is involved in selling life insurance policies and announces bonus?
No. IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint
Where can I find full information about my insurance policy?
It is the policy document which provides full information, coverages, exclusions of the policy.
What can be done in the case of loss of insurance policy?
Report loss to the insurance company immediately and get a duplicate policy by complying with the formalities. The duplicate policy confers the same rights as the original policy bond.
What is a Term Insurance?
You can choose to have protection for a set period of time with Term Insurance. In the event of death or Total and Permanent Disability if the benefit is offered), your dependants will be paid a benefit. In Term Insurance, no benefit is normally payable if the life assured survives the term.
What is Whole life insurance?
With whole life insurance, you are guaranteed lifelong protection. Whole life insurance pays out a death benefit so you can be assured that your family is protected against financial loss that can happen after your death. It is also an ideal way of creating an estate for your heirs as an inheritance.
What is an Endowment insurance?
An Endowment Policy is a savings linked insurance policy with a specific maturity date. Should an unfortunate event by way of death or disability occur to you during the period, the Sum Assured will be paid to your beneficiaries. On your surviving the term, the maturity proceeds on the policy become payable.
What is Money back of Cash back policies?
Under this plan, certain percent of the sum assured is returned to the insured person periodically as survival benefit. On the expiry of the term, the balance amount is paid as maturity value. The life risk may be covered for the full sum assured during the term of the policy irrespective of the survival benefits paid.
What are children policies?
These types of policies are taken on the life of the parent/children for the benefit of the child. By such policy the parent can plan to get funds when the child attains various stages in life. Some insurers offer waiver of premiums in case of unfortunate death of the parent/proposer during the term of the policy.
What are Annuity policies?
An annuity is an insurance product that pays out regular income. It is often used as part of a retirement portfolio.
Annuities can be broadly classified into two categories - immediate and deferred.
In an immediate annuity, there is very little time difference between the accumulation phase and the disbursal phase. The period when the annuity policy holder makes his/ her premium payments is known as the accumulation phase. The disbursal phase is when the annuity payouts are being made to the policy holder. In case of immediate Annuity, the Annuity payment from the Insurance Company starts immediately as per the terms and conditions of the policy. Purchase price (premium) for immediate Annuity is to be paid in Iumpsum in one instalment only.
Deferred annuity is the exact opposite of an immediate annuity. In deferred annuity, there is a significantly long gap between the accumulation phase and the time the policy holder gets his/her payments annuitized. Due to a longer accumulation phase, payouts in a deferred annuity scheme start from a future date and not immediately.
What is a proposal form?
It is a form to be filled in by the prospect in written or electronic or any other format as approved by IRDAI, where the prospect needs to provide all material information as required by the insurer in respect of a risk, in order to enable the insurer to take informed decision in the context of underwriting the risk, to determine the rates, advantages, terms and conditions of the cover to be granted.
What is material information?
"Material Information” means all important, essential and relevant information sought by the insurer in the Proposal Form and other connected documents to enable the Insurer to take informed decision in the context of underwriting the risk.
What are the tax benefits under insurance policies?
The tax benefits are as per the Income Tax Act provisions/rules and are subject to change from time to time. You may go through the Income Tax provisions for more information.
Whether a person can buy multiple term insurance plans and what is the rule for payment of claims in such cases.
The Authority has not barred Life insurance company (ies) from issuing multiple insurance policies to the same person or to a person who already holds life insurance policy (ies) from other life insurance company (ies). In case of unfortunate event of death, beneficiary can claim from all the life insurance policies taken by the insured. However, the person must disclose the complete details of previously brought policies to the insurance company and not doing so can result in misrepresentation which can be a ground for rejection of life insurance death claim.
Further, your attention is invited to section 45 of Insurance act, 1938 which contains provision on policy not to be called in question on grounds of misstatement after three years.”
Are there any guidelines on buying of term plan for armed forces, can they get term plan or not, if yes then on which condition.
The Authority has not barred any life insurance company from offering Term Insurance to individuals including those who are members of armed forces. However, the insurance companies offer insurance after assessing the mortality risk of the individual based on factors such as insurable interest, need for cover, income profile, life style habits, occupation, personal and family medical history etc. Further, it is the professional decision of the Insurance company whether to offer life Insurance or not based on their Board approved underwriting policy as Insurance is a long term contract between the Insurer and the Insured.”
Whether my policy can be forfeited by Insurer?
Yes, the policy can be forfeited and the circumstances on which it can be forfeited will be mentioned clearly in the Policy Document.
Why income statement of the prospect is necessary for issuing term insurance plans?
It is informed that the term insurance plans offer high risk cover at relatively lower premiums and the Life Insurer carries big risk of paying the full sum assured in the event of claim even after payment of one instalment of premium. One of the elements of risk is called moral hazard where Insurer seeks to minimize it by underwriting the life proposed, as per their board approved underwriting rules, based on information submitted such as Age, Health, Financial status, Family.
By ascertaining the income earned by the life proposed through valid income proof, the Life Insurer assesses the commensurate need for Insurance, requirement of quantum of Insurance as well as premium paying capacity. This will ensure that people with no or little income do not obtain disproportionately high sum assured policies by concealing their real income/sources putting the Insurer on high risk. Life Insurers pay the claims out of premiums paid by all other policy holders which the Insurer holds in fiduciary capacity.
Further, Prevention of Money Laundering Act, 2002 also mandates that all financial institutions including Life Insurance Companies shall verify and document the legal sources of income before issuing financial products.”
FAQs on Saral Jeevan Bima
What is Saral Jeevan Bima?
“Saral Jeevan Bima” is a non-linked non-participating individual pure risk premium life insurance plan, which provides for payment of Sum Assured in lump sum to the nominee in case of the Life Assured’s unfortunate death during the policy term.
What is the minimum and maximum age at entry for Saral Jeevan Bima?
The minimum age at entry is 18 years and the maximum is 65 years
What is minimum and maximum term of insurance cover for Saral Jeevan Bima?
The minimum term of insurance cover is for 5 years and the maximum is 40 years.
What is minimum and maximum sum assured available in Saral Jeevan Bima?
a) Minimum sum assured is Rs.500000/- (Five lakhs) and the Maximum sum assured is Rs. 25,00,000.
b) Insurers have the option of offering Sum Assured beyond Rs. 25,00,000.
What are the different premium payment options available in Saral Jeevan Bima?
a) Single premium,
b) Limited premium payment term of 5 and 10 years and
c) Regular premium payment term equal to the policy term.
What are the different premium payment modes available in Saral Jeevan Bima?
a) Single premium in lump sum
d) Monthly (Only under ECS/NACH).
What is the benefit payable on the maturity in Saral Jeevan Bima policy?
No. No maturity benefit is payable as this is a term insurance plan.
What are the exclusions under the plan Saral Jeevan Bima?
Only suicide clause (period of 12 months) is applicable as per the extant regulations.
Is waiting period applicable before the risk cover commences in Saral Jeevan Bima?
Yes. A waiting period of 45 days is applicable from the date of commencement of risk. In case of revival of Policy, the waiting period shall not be applicable. During the waiting period, the claim amount on death of the life assured other than due to accident will be limited to an amount equal to 100% of all premiums received excluding taxes.
What should one verify before signing the proposal in Saral Jeevan Bima?
One has to verify the approved sales literature for
- features and benefits
- limitations and exclusions
- lapsation and its consequences
- other disclosures.
What happens if payment of premiums is discontinued in Saral Jeevan Bima?
No surrender value is payable under the plan. However, policy cancellation value is payable for:
- Single premium and
- Payment of minimum 2 years premium under limited premium payment option.
- No policy cancellation value is payable in respect of regular premium payment policies.
FAQs on Saral Pension
What is Saral Pension?
“Saral Pension” is a Single premium, Non-linked, Non-participating Immediate Annuity plan.
What is the minimum and maximum age at entry in Saral Pension
Minimum : 40 years last birthday
Maximum : 80 years last birthday
What is the minimum annuity payable in Saral Pension?
- Rs. 1000 per month
- Rs. 3000 per quarter
- Rs. 6000 per half year
- Rs. 12000 per annum
What is the term of the Saral Pension policy?
This is a Whole Life Product
What are the different premium payment options available in Saral Pension?
Only Single premium (which is called purchase price)
What is the Mode of annuity payment by the Insurer in Saral Pension?
Monthly, quarterly, half-yearly and yearly modes available and the annuity is payable as per the chosen mode by the annuitant.
What are the options available in Saral Pension?
Two options available in this product.
Option (i) - Life Annuity with Return of 100% Purchase Price
Option (ii) - Joint Life Survivor Annuity with Return of 100% of Purchase Price on death of last survivor. (Joint Life – only spouse is covered)
What are the survival benefits payable in Saral Pension?
Under Option (i) i.e. Life Annuity with Return of 100% of Purchase Price,
Annuity is paid for the life of the annuitant.
Under Option (ii) i.e. Joint Life Last Survivor Annuity with Return of 100% of Purchase Price, the annuity is first paid to the primary annuity for life. After death of primary annuitant, if the spouse is surviving, the spouse continues to receive the same amount of annuity for life till his/her death.
What is the benefit payable on the maturity of the Saral Pension policy?
No maturity benefits available under the policy.
What are the death benefits payable in Saral Pension policy?
Under Option (i) i.e. Life Annuity with Return of 100% of Purchase Price, on the death of the annuitant, 100% of Purchase price (single premium excluding taxes) shall be returned to the nominee.
Under Option (ii) i.e. Joint Life Last Survivor Annuity with Return of 100% of Purchase Price, on the death of the last survivor, 100% of Purchase price (single premium excluding taxes) shall be returned to the nominee.
Is loan facility available in Saral Pension?
Yes, loan facility available in the product after six months from the date of commencement of the policy.
Can Saral Pension policy be surrendered?
Yes, the policy can be surrendered any time after six months from the date of commencement, if the annuitant or the spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the Policy Document. 95% of the purchase price can be received as surrender value.
Can one seek refund of premiums/purchase price if not satisfied with the Saral Pension policy, after purchasing it?
The annuitant can seek refund of purchase price if he/she disagrees with the terms and conditions of the policy, within 15 days (30 days in case of electronic policies and policies obtained through distance mode) from the date of receipt of the policy document stating the reasons for objection. The policyholder shall be entitled to a refund of the premium subject only to a deduction of stamp duty charges paid and annuity paid, if any.
FAQs on Assignment
What are the governing provisions for Assignment of a policy of insurance?
The Assignment of a policy of insurance is governed by the provisions of Section 38 of the Insurance Act, 1938 and IRDAI (Fee for granting written acknowledgement of the receipt of Notice of Assignment or Transfer) Regulations, 2015.
How an assignment is to be made?
As per Section 38 (1) of Insurance Act, 1938, an assignment of a policy of insurance, wholly or in part, whether with or without consideration, is to be made only by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or his duly authorized agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
Is the Insurer having right to refuse/decline endorsement of assignments?
Yes, as per Section 38 (2) of Insurance Act, 1938, Insurer may decline to act upon any endorsements where it has sufficient reason to believe that such transfer or assignment is not bona fide or is not in the interest of the policyholder or in public interest or is for the purpose of trading of insurance policy.
Whether refusal of assignments is recorded and communicated to the policyholders by the Insurers? If yes, what are the time limits?
Yes, as per Section 38 (3) of Insurance Act, 1938. The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate the same to the policyholder not later than thirty days from the date of the policyholder giving notice of such transfer or assignment.
What are the options available to the policyholder if he/she is not satisfied with the refusal of endorsement of assignment by Insurer?
The policyholder may prefer a claim to IRDAI within 30 days from the date of receipt of the communication from the insurer containing reasons for such refusal, as per Section 38 (4) of Insurance Act, 1938.
Is there any fee required to be paid by the policyholder for assignments?
No fee is required to be made for recording the assignments. Bur for granting a written acknowledgment of the receipt of notice of assignment or transfer, Insurer can collect Rs. 50 (inclusive of all applicable taxes) in case of policies issued in electronic form and Rs. 100 (inclusive of all applicable taxes) in case of policies issued other than electronic form. (as per Section 38 (7) of Insurance Act, 1938 and the Regulations issued by the Authority).
FAQs on Nominations:
What are the governing provisions for Nomination of a policy of life insurance?
The Nomination of a policy of life insurance is governed by the provisions of Section 39 of the Insurance Act, 1938 and IRDAI (Fee for Registering Cancellation or Change of Nomination) Regulations, 2015.
When a Nomination can be made?/ Whether nomination can be made or changed at any stage of life insurance policy ?
As per Section 39 (1) of Insurance Act, 1938, the holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death.
Whether any fee is required to be made for nominations at the time of policy issuance stage?
No fee is required to be made for registering a nomination at the time of effecting a policy of life insurance or any time thereafter.
From when a Nomination can be effectual?
Any nomination unless it is incorporated in the text of the policy itself, be made by an endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy cannot be effectual, as per Section 39(2) provisions of Insurance Act, 1938.
Is nominations made be cancelled or changed during the policy term?
Yes, nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the insurer, the insurer shall not be liable for any payment under the policy made. (Provisions of Section 39 (2) of Insurance Act, 1938).
Is there any fee is required to be made by the policyholder for such cancellations or changes of nominations?
Yes, for registering a cancellation or change of nomination by the holder of a policy of life insurance, Insurer may collect the fee of Rs. 50/- (inclusive of all applicable taxes) in respect of policies issued in electronic form and Rs.100/- (inclusive of all applicable taxes) in respect of policies issued in other than electronic form. (IRDAI Regulations).
What happens to the nominations when a policy is assigned?
A transfer or assignment of a policy made in accordance with section 38 shall automatically cancel a nomination, subject to the provisos of Section 39 of Insurance Act, 1938.
To whom the policy monies will be paid if all the nominee (s) die before policy matures?
As per Section 39 (5) of Insurance Act, 1938 provisions, in such case, the amount secured by the policy shall be payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.
To whom the policy monies will be paid if the policyholder dies after maturity of the policy?
As per Section 39(11) of Insurance Act, 1938 provisions, where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him because of his death, in such a case,his nominee shall be entitled to the proceeds and benefit of his policy.
FAQs on Maintenance of Records
What are the governing provisions for Maintenance of Records?
Section14 (1) of the Insurance Act, 1938 and IRDAI (Maintenance of Insurance Records) Regulations, 2015 (hereinafter referred to as “Regulations”).
What are the provisions of Section 14 (1) of Insurance Act, 1938?
Section 14(1) stipulates the following:
Every insurer, in respect of all business transacted by him, shall maintain----
(a) a record of policies, in which shall be entered, in respect of every policy issued by the insurer, the name and address of the policy-holder, the date when the policy was effected and a record of any transfer, assignment or nomination of which the insurer has notice;
(b) a record of claims, every claim made together with the date of the claim, the name and address of the claimant and the date on which the claim was discharged, or, in the case of a claim which is rejected, the date of rejection and the grounds thereof; and
(c) a record of policies and claims in accordance with clauses (a) and (b) may be maintained in any such form, including electronic mode, as may be specified by the regulations made under this Act.
What are the essential records to be maintained by the Insurers as per the Maintenance of Records Regulations?
Regulation 3 (1) of the Regulations stipulates that every insurer shall maintain a record of every policy issued and a record of every claim made as per section 14 (1) (a) and 14 (1) (b) of the Act.
In what form these records to be maintained?
As per the Regulation 3(2) of the Regulations ‘Record of such policies and claims shall also be maintained in electronic form irrespective of maintenance in any other form’.
Whether any Board approved policy is required on Maintenance of Records?
Yes, as per the Regulation 3(5) of the Regulations, the manner and maintenance of the records shall be as per policy framed by the insurers and approved by their Board.
Whether any specific regulatory provisions prescribed for the matters to be included in the Board approved policy?
It is prescribed in Regulation 3(6) of the Regulations that with regard to the maintenance of records in electronic form, the board approved policy shall inter alia include the following:
- Processing and electronic maintenance of records,
- Privacy and security of policyholder and claim data,
- Handling Virus, Vulnerability issues,
- Security of Hardware and Software,
- Backups, Disaster Recovery and Business Continuity and
- Data Archival.
The Regulation 3(7) of the Regulations also stipulates that ‘the Board approved policy shall also include a detailed plan to review the implementation of the maintenance and storage of records’.
Who will oversee the review of the Board approved policy of Maintenance of Records?
Regulation 3 (7) of the Regulations stipulate that “such review will be overseen by the Risk Management Committee of the Board of the Insurers”.
At what time intervals the Board approved policy of Maintenance of Records needs to be reviewed?
As per Regulation 3(8) of the Regulations, the Policy shall be reviewed once in a year within 90 days from the expiry of the financial year.
Whether the maintenance of records can be maintained outside India?
No.As per Regulation 3 (9) of the Regulations, the records including those held in electronic mode, pertaining to all the policies issued and all claims made in India shall be held in data centers located and maintained in India only.
Whether the modified Board approved policy of Maintenance of Records needs to be filed with the Authority?
Yes, as per Regulation 4(2) of the Regulations, the modified policy shall be filed with the Authority, within 30 days from the date of such modification by the Board.
FAQs on Manner of Receipt of Premium
What are the governing provisions for Manner of Receipt of Premium?
Section 64 VB of the Insurance Act, 1938 and IRDA (Manner of Receipt of Premium) Regulations, 2002.
Whether risk can be assumed even premiums are not received by the Insurer?
No. Section 64 VB (1) of the Insurance Act, 1938 provisions stipulate that “No risk to be assumed unless premium is received in advance”.
What happens to the premium collected by Insurance Agent?
Section 64 VB (4) of the Insurance Act provisions stipulate that where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he shall deposit with, or despatch by post to, the insurer, the premium so collected in full without deduction of his commission within twenty‑ four hours of the collection excluding bank and postal holidays.
Whether Insurer can refund the premiums, if any, to the third party other than the policyholder?
No. As per the provisions of Section 64 VB (3) of the Insurance Act, any refund of premium which may become due to an insured on account of the cancellation of a policy or alteration in its terms and conditions or otherwise shall be paid by the insurer directly to the insured by a crossed or order cheque or by postal money order and a proper receipt shall be obtained by the insurer from the insured, and such refund shall in no case be credited to the account of the agent.
What are the modes available to the policyholders to pay the premiums?
As per Regulation 3 of IRDA (Manner of Receipt of Premium Regulations), 2002, the following modes are available to pay the premiums:
- Any recognized banking negotiable instrument such as cheque including demand drafts, pay orders, banker’s cheques drawn on any scheduled bank in India;
- Postal money orders;
- Credit or Debit Cards held in his name;
- Bank Guarantee or Cash Deposit;
- Direct credits via standing instructions of proposer or the policyholder or the life insured through bank transfers; and
- any other method of payment as may be approved by the Authority from time to time.
Whether Insurer can recover the collection charges of the instrument from the proposer?
Regulation 5 of IRDA (Manner of Receipt of Premium Regulations), 2002 prescribes that the Insurer may at its option recover the collection charges of the instrument from the proposer.
What happens to the policy if the remittance made by the Insured is not realised by the Insurer?
In all cases of risks covered by the policies issued by an insurer, the attachment of risk to an insurer will be in consonance with the terms of Section 64VB of the Act and except in the cases where the premium has been paid in cash, in all other cases the insurer shall be on risk only after the receipt of the premium by the insurer.
Provided that in the case of a policy of general insurance that where the remittance made by the proposer or the policyholder is not realised by the insurer, the policy shall be treated as void ab-initio.
Provided further that in the case of a policy of life insurance, the continuance of the risk or otherwise shall depend on the terms and conditions of the policy already entered into.
FAQs on Micro Insurance Regulations
What are the governing provisions for Micro Insurance?
Insurance Regulatory and Development Authority of India (Micro Insurance) Regulations, 2015 (Hereinafter referred to as “Regulations”).
What is a Micro Insurance Policy?
As per the Regulations, micro insurance policy is an insurance policy sold under a plan which has been specifically approved by the Authority as a micro- insurance product.
What is a Micro Insurance Product?
As per the Regulations, Micro Insurance Product includes a general micro- insurance product or life insurance product or health insurance product, proposal form and all marketing materials in respect thereof;
Who is a Micro Insurance Agent?
As per the Regulations, Micro Insurance Agent means the following entities or individuals who are appointed as Micro Insurance Agents in accordance to the regulations
- a Non-Government Organisation (NGO);
- a Self-Help Group (SHG);
- a Micro-Finance Institution (MFI)
- RBI regulated NBFC – MFIs
- District Cooperative Banks licensed by Reserve Bank of India subject to being eligible as per extant norms of Reserve Bank of India
- Regional Rural Banks established under Section (3) of Regional Rural Banks Act, 1976 subject to being eligible as per extant norms of Reserve Bank of India
- Urban Co-operative banks licensed by Reserve Bank of India subject to being eligible as per extant norms of Reserve Bank of India
- Primary Agricultural Cooperative Societies
- Other Cooperative Societies registered under any of the Cooperative Societies Acts
- Business correspondents appointed in accordance to the extant RBI Guidelines with any of the Scheduled Commercial Banks
How appointment of Micro Insurance Agent is done?
A micro-insurance agent shall be appointed by an insurer by entering into a deed of agreement, which shall clearly specify the terms and conditions of such appointment, including the duties and responsibilities of both the micro-insurance agent and the insurer:
With how many Insurers the Micro Insurance Agent can work?
A micro insurance agent may work with One Life Insurance Company, one General Insurance Company, one Agriculture Insurance Company of India Ltd and with any one of the health insurance companies registered with the Authority.
Is there any training required for Micro Insurance Agent?
Yes, at least twenty-five hours of training by the Insurers in the languages recognised by the Constitution of India to all micro-insurance agents and their specified persons in the areas of insurance selling, policyholder servicing and claims administration.
PROVIDED those micro insurance agents who are appointed to distribute General Insurance policies to MSME Sector in accordance to the Regulations shall undergo additional 25 hours of the training at the expenses of the insurer.
Refresher training, not less than half of the prescribed number of hours of training, shall be imparted as on the expiry of every spell of three years from the date of entering into the agreement.
What is the total remuneration/commission payable to Micro Insurance Agent?
As per the Regulations, the remuneration including commission shall not exceed the limits as stated below:
- For Life Insurance Business: (i)Single Premium policies - Ten per cent of the single premium (ii) Non-single premium policies - Twenty per cent of the premium for all the years of the premium paying term
- For General Insurance Business: Fifteen per cent of the premium.
- For group insurance products, the insurer may decide the commission subject to the overall limits prescribed in the Regulations.
Whether Micro Insurance Policies are reckoned for the purpose of rural and social sector obligations of Insurers?
Yes, as per the Regulations, All micro-insurance policies may be reckoned for the purposes of fulfilment of social obligations. AND
Where a micro-insurance policy is issued in a rural area and falls under the definition of social sector, such policy may be reckoned for both under rural and social obligations separately.
Whether there is any tie-up between Life Insurer and General Insurer in offering Micro Insurance Product?
Yes, the Regulations allow tie-up between Life Insurers and General Insurers in offering Micro Insurance Products as per the procedure laid down in the Regulations.
Whether all Micro Insurance Agents can appoint Specified Persons?
Other than individual Micro Insurance Agents, all other Micro Insurance Agents are allowed to appoint Specified Persons with the prior approval of the insurer for the purpose of discharging all or any of the functions stated in sub-regulation (3) of Regulation 5 of the Regulations.
What is the minimum group size in Micro Insurance Schemes?
As per the Micro Insurance Regulations 2015, the minimum group size is 5.
What is the maximum sum assured in life micro insurance product?
As per the Micro Insurance Regulations 2015, the sum assured under an Insurance product offering Life or pension or Health benefits shall not exceed an amount of Rs 200000.
What is the maximum amount of cover in general and health insurance in case of Micro Insurance policies?
As per the Micro Insurance Regulations 2015, the following are the limits:
What is the ceiling of annual premium in a Micro Variable Insurance Product?
As per the Micro Insurance Regulations 2015, the Annual Premium shall not exceed Rs 6000 p.a. in a Micro Variable Insurance product under Non Linked Non-Par platform.
Any specific norms for Life Micro Insurance Products prescribed in the Micro Insurance Regulations 2015?
Yes, prescribed under Schedule III attached to the Regulations.
Is Micro Insurance Product allowed to be offered to sell under Linked Insurance Platform?
No. Insurers shall not offer micro insurance products under unit linked platform.
FAQs on Outsourcing Regulations 2017
What are the governing provisions for Outsourcing?
Insurance Regulatory and Development Authority of India (Outsourcing of Activities by Indian Insurers) Regulations, 2017 . The Regulations are available in IRDAI website and the same can be viewed under Regulations tab.
What is Outsourcing?
As per the Regulations, ‘Outsourcing’ is defined as the use of third party services by the Insurer to perform activities that would normally be undertaken by the Insurer, either now or in future, but does not include services which are generally not expected to be carried out internally by the insurers such as Legal services, Banking Services, Courier services, medical examination, forensic analysis.
Who is an Outsourcing Service Provider?
Outsourcing Service Provider means third party service provider who carry out the activities outsourced, for Insurers
What is an outsourcing agreement?
Outsourcing agreement means a written agreement entered into between the Insurer and outsourcing service provider outlining the terms and conditions for services which may be rendered by the Outsourcing service provider.
Whether Insurers can outsource all their activities?
No. Insurers cannot outsource all their activities. The prohibited activities are listed in the Outsourcing Regulations 2017.
What are the activities prohibited in the Outsourcing Regulations 2017?
The following activities are prohibited:
- Investment and related functions
- Fund Management Including NAV calculations
- Compliance with AML and KYC, provided, KYC verification through third party service providers is allowed as per Clause 3.1.2 of IRDAI AML Master Circular dated 28th Sept 2015.
- Product designing, all actuarial functions and enterprise-wide risk management;
- Decision making in Underwriting and Claims functions excluding procedural activities related to payment of Survival Benefit claims in Life Insurance;
- Policyholders Grievances Redressal
- Decision to appoint Insurance Agents, Surveyors and Loss Assessors
- Approving Advertisements
Whether policy servicing can be outsourced?
The activities that support Policyholder servicing are allowed to be outsourced though the policy servicing remains an integral activity for the Insurer who is totally responsible for the services rendered.
Is a Board approved policy is mandated for Outsourcing Activities in the Regulations?
Yes, a Board approved policy is mandated as per Outsourcing Regulations.
Who implements the Outsourcing Policy?
Outsourcing Committee constituted by the Board of Directors shall be responsible for implementing the policy.
What outsourcing arrangements are considered material?
An outsourcing arrangement shall be considered material if the estimated annual expenditure under an outsourcing contract is likely to exceed 5 % of the total expenditure incurred during preceding financial year on all outsourcing activities.
Whether due diligence is required for both material and non-material outsourcing activities?
Yes, for both material and non-material the due diligence is required as prescribed in the Regulation (Regulation 7 (i) and Regulation 10 (i) and (ii)).
What are the risks to be evaluated by the Insurers in case the outsourcing arrangements are material?
The risks like strategic risk, reputation risk, compliance risk, operational risk, exit strategy risk, contractual risk, information risk, concentration risk as detailed in the Annexure II to the Regulations.
Whether Outsourcing Service Provider can sub-contract the Outsourced Activity?
Only partial (non-substantial) allowed with prior consent of the Insurer and the additional risk which flows due to subcontracting shall be factored in at the time of due diligence.
Whether outsourcing is allowed with Insurance Agents, Insurance Intermediaries and other regulated entities?
Subject to these Regulations, Insurance Agents, Insurance Intermediaries and other regulated entities of the Authority shall not be contracted for performing any activity other than those activities that are allowed under the respective regulations or guidelines notified by the Authority from time to time governing their registration or functioning.
What are the specific regulations applicable in case Insurers outsource the activities to the service providers outside India?
In cases where Insurer outsources to the service providers outside India, the Insurers shall ensure that the terms of the agreement are in compliance with respective local regulations governing the outsourcing service provider and laws of the country concerned and such laws and regulations do not impede the regulatory access and oversight by the Authority.
Whether the original policyholder records can be maintained outside India ?
No. All original policyholder records continue to be maintained in India.
What are the reporting requirements of Outsourcing activities to the Authority?
Insurers shall report all the outsourcing arrangements where annual pay-out either per outsourcing service provider or per activity is One Crore rupees or more, every year within 45 days from the close of the financial years per the formats specified in the Regulations.
Whether the Authority is having powers to access the activities of outsourced service provider?
Yes.The Regulations stipulate that Insurer shall include a clause to this extent in their outsourcing arrangements or obtain an undertaking from the outsourced entity.
How long the records pertaining to outsourcing arrangements need to be maintained by the Insurers?
Maintained for a period of five years from the end of outsourcing contract period.
FAQs on IRDAI (PLACES OF BUSINESS) REGULATIONS, 2015
What are the governing provisions for Places of Business?
Section 64 VC of the Insurance Act and IRDAI Places of Business Regulations 2015 (hereinafter referred to as “Regulations”).
What is a “Place of Business”?
‘Place of Business’ means, a regional office, a zonal office, a divisional office, branch office or any subordinate office or any other office by whatever name called set up within India or a ‘representative or a liaison office of Indian Insurers’ or a ‘Foreign Branch Office of Indian Insurer’ set up outside India by the Insurers registered in India.
What is a “Representative or a Liaison Office”?
‘Representative of a Liaison Office’ means a place of business of Indian Insurers outside India to act as a channel of communication with the Principal place of business or Head Office by whatever name called and entities in India but which does not undertake any commercial or trading or industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.
What is a “Foreign Branch Office”?
‘Foreign Branch Office’ is defined in the Regulations as a ‘branch office’ of the Indian Insurers set up outside India which means (a) any establishment described as a branch by the company; or (b) any establishment carrying on either the same or substantially the same activity as that carried on by the Head Office of the company.
Whether approval of the Authority is needed to open any place of business in India or Outside?
Yes, every Insurer shall take the prior approval of the Authority before opening any place of business, be it inside India or outside India except in the centers or places or locations where the population is less than one lakh as per the latest decennial census classification available and inform the Authority.
Whether Places of Business Regulations are applicable to branch established in India by a foreign company for doing reinsurance business as defined in Section 2 (9) (d) of the Insurance Act.
No, these Regulations are not applicable to such type of branches.
What is a Board approved Annual Business plan as per the Places of Business Regulations?
All Insurers shall have in place a Board approved Annual Business Plan for every Financial Yea in addition to the business plans and shall contain the total number of new places of business proposed to be opened within India not only in the urban centers but also in semi-urban and rural centers.
What is the time limit to open the place of business after receiving the approval from Authority?
Within a period of one year from the date of approval of the Authority.
What happens if an approved place of business is not opened within the time limit of one year?
After the expiry of the time limit, the approval of the Authority stands lapsed and Insurers may incorporate unopened places of business in subsequent Annual Business Plans by following the procedure laid down in the Regulations
Any specific provisions pertaining to place of business (back-end operations) where no customer interface is involved?
Such places of business shall at minimum offer policy holders’ services such as collection of premiums, proposal deposits or attending policy service requests.
Whether approval of the Authority is required for closure of place of business?
No approval is needed for closure but the Authority shall be notified two months in advance about the proposal of the closure of place of business.
Whether approval of the Authority is required for Relocation or change of any place of business?
Approval of Authority is needed where relocation or change of any place of business is not within the same city, town or village.
Whether there is a need to inform policyholders about relocations or closures?
Yes, minimum of two months advance notice on all the proposed relocations or the closures, whether within the same city, town or village or otherwise, shall be given to the policyholders serviced by that place of business along with the information on alternate arrangements being made to provide services to them.
What are the activities allowed by a Representative or a Liaison Office?
The activities allowed in the Regulations only need to be carried out by Representative or a Liaison Office. For detailed regulations, please visit the full Regulations placed in www.irdai.gov.in.
Whether any reports need to be filed by the Insurers/Representative Office/foreign branch office?
Yes, they need to submit the reports as per the Regulations. For detailed regulations, please visit the full Regulations placed in www.irdai.gov.in.
Whether a Representative or Liaison office can contract any liability outside India.
No. The representative or liaison office should not contract any liability outside India.
Whether a Representative or Liaison office can appoint agent and pay commission?
No agent would be permitted to be engaged by the Representative or Liaison Office and therefore no commission in whatever form shall be paid
Whether a Representative or Liaison office can accept the proposal and underwrite the risks?
Insurers can arrange to identify the prospects amongst non-resident Indians through the representative or liaison offices but, the acceptance of the proposal and underwriting of risks shall be done only in India. Consequently, the policies to be issued shall be designated only in Indian rupees.
What is the eligibility criteria for Insurers to open a Foreign branch office?
The eligibility criteria is prescribed in the Regulations. For detailed regulations, please refer www.irdai.gov.in
What are the operational requirements for foreign branch office?
The details can be viewed in full regulations placed in the website www.irdai.gov.in
From where the capital requirements will be raised in case foreign branch office operations result or likely results into a loss?
From the shareholders’ account of the Insurers.
FAQs on Rural and Social Sector Obligations
What are the governing provisions for Rural and Social Sector Obligations?
Section 32B and Section 32C of the Insurance Act 1938 and IRDAI (Obligations of Insurers to Rural and Social Sectors) Regulations, 2015.
What is the definition of Rural Sector?
Rural Sector is defined in the IRDAI (Obligations of Insurers to Rural and Social Sectors)Regulations, 2015 as the places or areas classified as “rural” while conducting the latest available decennial population census (Census of India).
What is the definition of Social Sector?
Social Sector is defined in the IRDAI (Obligations of Insurers to Rural and Social Sectors) Regulations, 2015 which includes unorganised sector, informal sector, economically vulnerable or backward classes and other categories of persons, both in rural and urban areas.
Are the rural sector obligations same for all the Life, General and Health Insurers?
No, it is not same.
- For Life Insurers, it is calculated as percentage of the total number of policies written in the respective years. The regulatory obligations prescribed are as follows:
- For General Insurers, it is calculated as percentage of gross premium income written direct in the respective years. The regulatory obligations prescribed are as follows:
- For Health Insurers, it is the 50% of the obligations prescribed for General Insurers.
Are the social sector obligations same for all the Life, General and Health Insurers?
Yes, it is same for Life, General and Health Insurers.
The following are the prescribed regulatory obligations:
(Note: Total business for the purpose of these regulations is the total number of policies issued in case of individual insurance and number of lives covered in case of Group Insurance. In case of individual health insurance policies covering the lives of family members, the lives covered under such policy may be taken into account both in determination of target as well as actual performance)
Whether micro insurance policies can be reckoned for the purpose of rural and social sector obligations?
Yes. All Micro insurance policies issued are eligible to be reckoned for the social sector obligations AND Where a micro insurance policy is issued in a rural area, such micro insurance policies may be reckoned for both rural and social sector obligations separately
Is business pertaining to Government subsidized social security schemes can be considered for the rural and social obligations by Insurers?
No.Business pertaining to Government subsidized social security schemes where total premium is paid by the Government will not be considered for the rural and social sector obligations. (as per the Regulation 4.3 of Rural and Social Sector Obligations Regulations).
What are the penal provisions applicable in case Insurers fail to comply with the obligations of rural and social sector?
As per Section 105 B of Insurance Act, 1938, If an insurer fails to comply with the provisions of section 32B, section 32C he shall be liable to a penalty not exceeding twenty- five crore rupees. Before imposing penalty, the matter shall be adjudicated as per the provisions of Section 105 C.
FAQs on Settlement Option
What is a settlement option under ULIP?
It is an option to be exercised by the policyholder of a unit linked life insurance policy to receive the maturity proceeds in instalments.
Whether nominee can exercise the Settlement option in case of death benefit?
No. This option is available only to the policyholder on maturity of the policy
How does the settlement option work?
In case of ULIPs, the investment risk is borne by the policyholder. Normally, on maturity, the number of units available to the credit of the policy will be encashed at the Net Asset Value per unit as on date of maturity. Thus, the maturity proceeds would depend on the Net Asset Value on a specific date, i.e., the date of maturity. Whereas, the settlement option provides an opportunity to the policyholder to encash the units at the Net Asset Value on the date of each instalment over a period not exceeding five years, instead of limiting to the value on one particular date.
Whether I can postpone the maturity date by opting Settlement option?
No. You can only take the maturity proceeds in instalments.
At what frequency the withdrawal can be done in Settlement options?
It depends on the periodicity made available by the Insurer– monthly, quarterly, half-yearly or yearly.
For how long I can have the settlement option?
The period of settlement option can be for a maximum of 5 years from the date of maturity.
Whether I can terminate the instalments and opt for the complete withdrawal after the start of periodic instalments during Settlement period?
Yes. Anytime during the 5 years you can opt for the complete withdrawal and the balance units as on the date of option will be encashed at the NAV rate prevailing on that date.
Will there be any charges for complete withdrawal in Settlement period?
Whether Life Insurance cover will continue during settlement option?
No. In case of the death of the policyholder during settlement option period, the nominee will be paid the remaining units at the NAV as on the date of intimation of death.
Whether I can switch or withdraw partial amount during settlement period?
Switching of funds and partial withdrawals are not allowed during the settlement period.
What will be the charges to be deducted during the settlement period?
Only Fund Management charges are allowed to be deducted during the settlement period.
When will the first instalment start in Settlement period?
The first instalment will be paid on the date of maturity.
Whether settlement option is available for all Unit linked products?
Except pension and variable insurance products, settlement option is available for all the other linked products. The availability and details of the settlement option will be mentioned clearly in the terms and conditions of the policy.
Who will bear the risk of investment during the settlement period?
The policyholder continues to bear the risk during the settlement period as the balance will continue to stay invested in the segregated fund and its value is subject to market risks. It may go up or down basis the market performance of your fund portfolio.
Where will the funds be invested during the settlement option period?
The funds will remain invested in the same segregated fund which was opted by the policyholder at the time of taking the policy or the segregated fund as on the date of maturity in case of fund switches exercised during the policy term.
How will the Instalment quantum be decided?
The available number of units under the Policy shall be divided by the residual number of instalments to arrive at a number of units for each instalment which will then be multiplied by the net asset value on the date of payment.
For example, if the policyholder opts for settlement in five (5) annual instalments, the first instalment will be one-fifth (i.e., 1/5) of the number of units available to the credit of the policy on the date of maturity, multiplied by the NAV as on that date.The second instalment will be one-fourth (1/4) of balance number of units multiplied by the NAV as on that date and so on.
What happens if the policyholder dies after exercising the option, but before the maturity date?
In such situation,the death benefit proceeds as per the terms and conditions of the policy shall become payable and settlement option will not be applicable.
After selecting settlement option, can I later change the mode of payment?
No. Once the payment starts, the mode of payment of instalments cannot be changed except that you may withdraw the whole amount of fund value at any given point of time within the period.
Does the nomination remain valid during the settlement period?
Yes. The nomination remains valid till the last instalment is paid.
FAQs (RTI RELATED Questions )
Request for furnishing copies of individual policy documents/policy related documents such as proposal forms, medical reports etc. by RTI Applicants.
The information is not available as Individual policy related documents are not maintained by the Authority.
Request to provide personal information of policyholders? Information sought by advocates and family members and others on Life Insurance policies of Individuals?
The information is not available as Individual policy related data is not maintained by the Authority.
Request for names and addresses of Life insurance companies.
The List of Life Insurance companies along with the address of the headquarters can be viewed at the following link
Request for information on employees (i.e. work record, benefits paid, personal details etc.) of Life Insurance companies.
The information is not available as the HR matters of the Insurance companies are not regulated by the Authority.
Requesting the Authority to settle the policy claims of individuals.
IRDAI is a Statutory Regulatory body. The liabilities of the regulated entities are not discharged by the Authority. However, it is also informed that in case of any grievance as a policyholder of any Life Insurance Company, the following Grievance Redressal Mechanism is put in place may be used for resolution of the same.
In the event of any complaint/grievance against insurer/s the applicant is required to first approach the Grievance/Customer complaints Cell of the concerned Insurer. In case of non-receipt of a response from insurer(s) with a reasonable period of time or are dissatisfied with the response of the company, approach the Grievance Cell of the IRDA at the following address:
Complaints against Life Insurance Companies:
Consumer Affairs Department,
Insurance Regulatory and Development Authority,
Survey No. 115/1, Financial District, Nanakramguda,
Gachibowli, Hyderabad – 500032
Call Toll Free Number 155255.
If not satisfied with the Insurance Company’s response the applicant can also file a complaint with the Insurance Ombudsman of the State. The Authority directed all Insurers to mention in the policy documents information relating to the ombudsman. The Insurance Ombudsman is an independent office to provide speedy and cost effective resolution of grievances to the customers with regard to any grievances connected with claim settlement up to a limit of Rs. 30 Lakhs per case.
What are the various functions of IRDAI? From where the IRDAI draws powers to discharge these functions?
The Authority/IRDAI draws powers from IRDA Act 1999 and certain provisions of Insurance Act,1938.Section 14 of IRDA Act 1999 specifies duties, powers and functions of IRDAI.
“Section 14. DUTIES, POWERS AND FUNCTIONS OF AUTHORITY. --
(1)Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, -
(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;
(b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
(c)specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss assessors;
(e) promoting efficiency in the conduct of insurance business;
(f) promoting and regulating professional organisations connected with the insurance and re-insurance business;
(g) levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business;
(i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);
(j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;
(k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
(m) adjudication of disputes between insurers and intermediaries or insurance intermediaries;
(n) supervising the functioning of the Tariff Advisory Committee;
(o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f);
(p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and
(q) exercising such other powers as may be prescribed.”
Number of public sector Life Insurance companies in India? List out their names?
Life Insurance Corporation of India is the only public sector Life Insurance company in India.
Which companies are private life insurance companies?
There are 23 private sector Life Insurance companies in India. They are:
AEGON Life Insurance Co. Ltd.
Aviva Life Insurance Company India Limited
Bajaj Allianz Life Insurance Co. Ltd.
Bharti AXA Life Insurance Co. Ltd.
Birla Sun Life Insurance Co. Ltd
Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
DHFL Pramerica Life Insurance Co. Ltd.
Edelweiss Tokio Life Insurance Co. Ltd.
Exide Life Insurance Co. Ltd.
Future Generali India Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd
ICICI Prudential Life Insurance Co. Ltd
IDBI Federal Life Insurance Co. Ltd.
India First Life Insurance Co. Ltd.
Kotak Mahindra Old Mutual Life Insurance Co. Ltd
Max Life Insurance Co. Ltd
PNB MetLife India Insurance Co. Ltd.
Reliance Nippon Life Insurance Co. Ltd.
Sahara India Life Insurance Co. Ltd.
SBI Life Insurance Co. Ltd
Shriram Life Insurance Co. Ltd.
Star Union Dai-ichi Life Insurance Co. Ltd.
Tata AIA Life Insurance Co. Ltd.
Total number of policies sold by life Insurance companies?
The year wise policies sold by Life insurance companies and the total premium obtained by the Life insurers can be viewed in the Authority’s yearly Hand books which can be viewed on the website www.irdai.gov.in >Reports>Handbook on Indian insurance
Total premium obtained by Life insurance companies?
The year wise total premium obtained by the Life insurers can be viewed in the Authority’s yearly Hand books which can be viewed on the website www.irdai.gov.in >Reports>Handbook on Indian insurance
Request for plan/product wise number of policies sold by Life Insurance Companies
Information sought is not available.as product wise new business data of Life insurance companies is not maintained by the Authority.
What are the remedies available to insured persons in case of mis-sale of life insurance policies?
As per section 10(1) of IRDAI (Protection of Policyholders Interests) Regulations,2017 the policyholder has a free look period of 15 days (30 days in case of electronic policies and policies obtained through distance mode) from the date of receipt of the policy document, to review the terms and conditions of the policy and where the policyholder disagrees to any of those terms or conditions, he has the option to return the policy to the insurer for cancellation.
Number of claims and Claim amount settled by Life Insurers?
The year wise death claims settled and death claim amount paid by Life insurance companies can be viewed in the Authority’s Annual reports which can viewed on the website www.irdai.gov.in >Reports>Annual reports of the Authority.
Request for claim settlement details of Individuals?
The information is not available as the details of claim settlement of individual policies of the insurers is not maintained by the Authority
Request for product/plan wise claim settlement data of Life Insurance companies.
The information is not available as the product type wise, product wise details of settlement of claims is not maintained by the Authority
Provide data on number of claims repudiated/rejected by Life Insurers.
The year wise death claims repudiated/rejected by Life insurance companies can be viewed in the Authority’s Annual reports which can viewed on the website www.irdai.gov.in >Reports>Annual reports of the Authority.
Please provide a copy of rules stating the guidelines to be followed by the Life Insurance Companies while settling Life Insurance Claims.
Regulation 14 of IRDAI (Protection of Policyholders’ Interests) Regulations,2017 prescribes the Claims procedure in respect of a Life Insurance policy. The Regulations can be viewed at the following link
Provide the maximum time limit of settlement of Life insurance claims?
As per regulation 14(2)(i) of IRDAI (Protection of Policyholders’ Interests) Regulations,2017, a death claim under a life insurance policy shall be paid or be rejected or repudiated giving all the relevant reasons, within 30 days from the date of receipt of all relevant papers and required clarifications. However, where the circumstances of a claim warrant an investigation in the opinion of the insurer, it shall initiate the same at the earliest and complete such investigation expeditiously, in any case not later than 90 days from the date of receipt of claim intimation and the claim shall be settled within 30 days thereafter.
Also as per regulation 14(2)(iv) of IRDAI (Protection of Policyholders’ Interests) Regulations,2017, in respect of Maturity, Survival Benefit claims and Annuities, the Life Insurer shall initiate the claim process by sending intimation sufficiently in advance or send post-dated cheque or give direct credit to the bank account of claimant through any electronic mode approved by RBI, so as to pay the claim on or before the due date.
Whether any penal interest is paid in case of delay in settlement of Life Insurance claims?
As per regulation 14(2)(ii) of IRDAI (Protection of Policyholders’ Interests) Regulations,2017. In respect of death claim if there is delay on the part of Insurer beyond the timelines mentioned in sub regulation 14(2)(i), the insurer shall pay interest at a rate, which is 2% above bank rate from the date of receipt of last necessary document
As per regulation 14(2)(iv) of IRDAI (Protection of Policyholders’ Interests) Regulations, 2017.In respect of Maturity, Survival Benefit claims and Annuities, in case of any delay on the part of the Insurer in settling the claim on due date, the life insurer shall pay interest at a rate, which is 2% above bank rate from the due date of payment or date of receipt of last necessary document from the insured/claimant, whichever is later.
Please inform the guarantee of claim if any company gets insolvent as per record?
According to Schedule III of IRDAI (Assets, Liabilities, and Solvency Margin of Life Insurance Business) Regulations, 2016 every insurer at all times shall maintain a control level of solvency i.e. solvency ratio of 150 percent. The Authority reviews solvency ratio among insurance companies on quarterly basis. The regulations can be viewed at IRDAI Website under CONSOLIDATED and GAZETTE NOTIFIED REGULATIONS.
Also section 56 (1) of Insurance Act 1938 states that in the winding up of an insurance company and in the insolvency of any other insurer the value of the assets and the liabilities of the insurer in respect of life insurance business shall be ascertained separately from the value of any other assets or any other liabilities of the insurer and no such assets shall be applied to the discharge of any liabilities other than those in respect of life insurance business.
Request for Surrender value of individual policies?
The information is not available as the details of the individual policies are not maintained by the Authority. However, the benefits and payments under the policy are based on the terms and conditions of the policy.
Whether there are any rules/regulations framed by Authority Mandating Life Insurance before availing loan from any Financial Institutions?
Is it mandatory to take Life Insurance for availing Home Loan?
No. However, Securing the loans, either by way of insurance or other modes, is the prerogative of the lending institutions concerned which may be as per terms and conditions of the loan or may be as per the directives if any, prescribed by the regulator governing the lending institution.
Kindly provide rules and regulations followed to open branch and its sub units for life insurance companies
The opening of branches and operating units of Life Insurance companies are regulated as per IRDAI (Places of Business) Regulations,2015. The same can be viewed at the following link.
What is the maximum limit of premium which can be paid in cash.
IRDAI has not imposed any limits on cash payment. However as per Master circular on AML/CFT guidelines for Life Insurers dated 28/09/2015 cash payments beyond Rs.50000 should always be accompanied by PAN.
The Master circular can be viewed at the following link
How much deposit is required for IRDAI to provide permission to a new life insurance company?
According to section 6 of Insurance Act 1938, no insurer carrying on the business of life insurance in India or after the commencement of the Insurance Regulatory and Development Authority Act, 1999, shall be registered unless he has a paid-up equity capital of rupees one hundred crores.
List of Life insurance companies which provide the PRIME MINISTER JEEVAN JYOTI BEEMA YOJNA.
9 Life Insurers are providing PMJJBY
- Tata AIA Life Insurance Co. Ltd.
- ICICI Prudential Life Insurance Co. Ltd
- HDFC Standard Life Insurance Co. Ltd
- SBI Life Insurance Co. Ltd
- Max Life Insurance Co. Ltd
- India First Life Insurance Co. Ltd
- Life Insurance Corporation of India
- Star Union Dai-ichi Life Insurance Co. Ltd
- Shriram Life Insurance Co. Ltd
Steps IRDAI takes to ensure that insurer must adhere to the contents of advertised product brochure.
Insurers are expected to publish the Sales Literature approved by IRDAI and adhere to the contents of the same. In case non-adherence is established Regulatory Action is initiated against the insurer.
Total No. of claims investigated by the Insurance Companies through Forensic Agencies.Outcome of all the claims where in forensic agencies were appointed by the Insurance Companies. Total claims rejected by Insurance Companies where in Forensic agencies were appointed.
The information sought is not available with the Authority.
Registration number of the Insurers.
The registration number of Life Insurers can be seen at the following link:-
www.irdai.gov.in >> Consumer affairs>> List of registered entities>. List of Life Insurers.
IRDA guidelines to Insurance companies to issue TERM INSURANCE policy.
The Life Insurance Products are governed by IRDAI (Non-Linked Insurance Products) Regulations, 2019 and IRDAI Linked Insurance Products) Regulations, 2019.The Regulations can be viewed on the Authority’s website i.e. at www.irdai.gov.in >>Legal >> Regulations.
Can Insurer Investigate in a Life Insurance policy ?
As per Regulation 14 (2)(i) of the IRDAI (Protection of Policyholders’ Interests) Regulations, 2017., the insurer may investigate the death claim. The regulation can be viewed at the following location in website
Irdai.gov.in >> Legal >> Regulations >>
IRDAI is empowered to issue Regulations as per section 26 of the IRDA Act, 1999.
IRDAI Regulation with respect to Persons with disabilities.
No such rules are notified by the Authority in respect of Life Insurance. However, Life Insurers provide Insurance cover as per their board approved underwriting policies.
Data and Information on Micro Insurance.
The information can be viewed at the following link:-
www.irdai.gov.in >> Reports >> Annual reports of the Authority
Terms and conditions of Life Insurance products of Insurers
It can be viewed at the following link on the website of the Authority.
www.irdai.gov.in >> Consumer Affairs >> Products offered >> Life Insurance products Terms and conditions
Regulation governing nomination in a Life Insurance policy.
Nomination in a policy is governed by the section 39 of the Insurance Act 1938, which can be viewed at the following link on the website of the Authority. www.irdai.gov.in >> Legal >> Legislations >.
Regulation governing Assignment in a Life Insurance policy.
Assignment in a policy is governed by the section 38 of the Insurance Act 1938, which can be viewed at the following link on the website of the Authority. www.irdai.gov.in >> Legal >> Legislations>>
Regulation governing surrender of a Life Insurance policy.
The surrender value of a Life Insurance policy is governed by the IRDAI (Acquisition of Surrender and Paid Up Values) Regulations, 2015. The Regulations can be viewed at the Authority website i.e. www.irdai.gov.in >>Legal>> Regulations>>
Free look cancellation of Life Insurance Policy.
Free look cancellation of Life Insurance Policy is defined in Regulation 10(1) of IRDAI (Protection of Policyholders’ Interests) Regulation,2017. The Regulation is reproduced below: -
“10(1). (i) The insurer shall inform clearly by the letter forwarding the policy to the policyholder that he has a free look period of 15 days from the date of receipt of the policy document and period of 30 days in case of electronic policies and policies obtained through distance mode, to review the terms and conditions of the policy and where the policyholder disagrees to any of those terms or conditions, he has the option to return the policy to the insurer for cancellation, stating the reasons for his objection, then he shall be entitled to a refund of the premium paid subject only to a deduction of a proportionate risk premium for the period of cover and the expenses incurred by the insurer on medical examination of the proposer and stamp duty charges.
(ii) In respect of a linked insurance product, in addition to the deductions under sub-regulation (i) above, the insurer shall also be entitled to repurchase the units at the price of the units on the date of cancellation.
(iii) A request received by insurer for free look cancellation of the policy shall be processed and premium refunded within 15 days of receipt of the request, as stated at sub clause (i), (ii) above.”
Grace period for payment of premium in life Insurance policy.
Information on PMJJBY Scheme.
The information on the PMJJBY scheme can be seen on the website of Govt. of India at the following link: https://www.jansuraksha.gov.in/FAQ.aspx
The guidelines for “Group Term Life Insurance”
The guidelines for “Group Term Life Insurance” are laid down in circular No: IRDAI/LIFE/MISC/CIR/172/09/2019 dated 26/09/2019 which can be viewed at the website of the authority under
The Regulations pertaining to group insurance can be viewed in Chapter VIII under Group Products in Insurance Regulatory and Development Authority of India (Non-Linked Insurance Products) Regulations, 2019. at the following link on the website of Authority.
www.irdai.gov.in >> Legal>> Regulations >> Regulations >> Consolidated & Gazette Notified regulations >.
Provide the list of documents that are normally required to be submitted by a claimant in case of a claim under the policy.
As per regulation 9(xviii) of Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests) Regulations, 2017. “The list of documents that are normally required to be submitted by a claimant in case of a claim under the policy” is stated in the life Insurance policy.
. Information on Suicide Clause in life insurance policy.
The information can be viewed at the Authority’s website :
(1) Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019
www.irdai.gov.in >> Legal>> Regulations >> Regulations >> Consolidated & Gazette Notified regulations >.
(2) Insurance Regulatory and Development Authority of India (Non-Linked Insurance Products) Regulations, 2019
www.irdai.gov.in >> Legal>> Regulations >> Regulations >> Consolidated & Gazette Notified regulations >.
Annual Report of the Authority
The Annual Report of the Authority can viewed at the Authority’s website at the following link: www.irdai.gov.in > Report and Statistics >> Annual reports of the Authority.
From where I can get information on Insurance Ombudsman
The information is available on the site of the Council for Insurance Ombudsman at the following link https://www.cioins.co.in/
Guidelines on Distance Marketing of Insurance Products.
Guidelines on Distance Marketing of Insurance Products can be viewed at the following link.
irdai.gov.in >> Legal >> Guidelines >>
Notification/Advisory issued by IRDA ,mentioning the mandatory rules for buying a “Term Insurance”
The Authority has not issued any Guidelines/Circular/rules regarding the eligibility to take term insurance or income/education/age criteria for availing term insurance. It is informed that the Life Insurers issue Insurance policies based on their board approved underwriting policy.
On what grounds can a term insurance claim be rejected after 3 years of policy issue?
“Policy not be called in question on ground of misstatement after three years” is dealt by Section (45) of the Insurance Act, 1938 which can be viewed at the following link on the website of the Authority at www.irdai.gov.in >> Legal >> Legislations>>
No separate law/instructions exist for term insurance claims rejection after 3 years.
If individual has purchased two insurance from the two different insurance companies can he claim double insurance at the same time from the different insurance companies
The Authority has not barred any individual from buying or claiming any number of Life Insurance policies and from any registered Insurer with IRDAI. The benefit in a life insurance policy depends upon the terms and conditions of the policy.
Provide information on registration of Insurance Companies?.
The information is available in Insurance Regulatory and Development Authority of India (Registration of Indian Insurance Companies) (Seventh Amendment) Regulations, 2016 which can be viewed at the following section in the Authority's website .
irdai.gov.in >> Legal >> Regulations >>