Market regulator Insurance Regulatory and Development Authority (IRDA) announced the extension of the time limit for implementation of obligations under IRDA (Standard Proposal Form for Life Insurance) Regulations. Prior to this announcement, last date of implementing this rule was February 16, 2013. It has now been extended to April 01, 2014. This new guideline aimed at Life Insurance Companies adopting a standard form for policy holders to bring in more clearness and consistency.
Under this new guideline, “Standard Proposal Form” contains space for personal information and suitable analysis of the policy holders. It also looks to confirm that all relevant subjects required to understand the policy are carried in the form, thereby protecting the interest of the prospective buyer of the policy. In addition to the above, this form contains details about the product suitability, its risk profile, financial stability and investment objective of the policy holder.
The extension for implementation was granted based on several representation received from various Life Insurance Companies.
