With regard to compliance of new regulations implemented by market regulator Insurance Regulatory and Development Authority (IRDA), which aims at making insurance policies more customers centric, insurance giant Life Insurance Corporation of India scrapped / will scrape 14 of its existing policies. These policies include Jeevan Mitra, Anmol Jeevan, Convertible Term Assurance Policies, Children Deferred Endowment Assurance, Jeevan Paramukh Plan, LIC’s Bima Account and Jeevan Nidhi. Other polices that are expected to be scrapped are Jeevan Aastha, Market Plus I, Jeevan Nischay and Jeevan Varsha.
IRDA had earlier given deadline of 30th September 2013 to implement new individual product regulations for the life insurance company but later extend to further three months to 31st December 2013.
With regard to group policies, life insurance companies were informed not to renew these policies after its expiry term falling on or after July 2013. However, all group policies at the time of renewal of such policy shall be given an option to switch over to the modified version of the group product (which confirms to the new regulations) if any, introduced later.
IRDA circular, which directs insurance companies to comply with the above, reads as follows, “All the existing group policies and all the existing individual products not in conformity with the provisions of this regulation shall be withdrawn from 01st August 2013 and 01st January 2013 respectively.
Life Insurance Corporation is the largest insurance and investment company in India wherein Government holds 100% shares in the company. It has market share of more than 80% of the total life insurance. The company witnessed a growth of 7.26% for HY ending September 2013 with premium amounting to Rs. 37,906 crores.
