The new traditional product guidelines are expected in the next few days and the new norms will expedite the process of product approvals quicker.
According to Mr. J Hari Narayan, Chairman of Insurance Regulatory and Development Authority (IRDA), approvals would speed up, since the product structures would be clearly defined by the new regulations.
The IRDA board have finalized and approved the guidelines. The guidelines are expected to be published in the gazette within a week. The insurance product guidelines have proposed some changes in the product structure, including the surrender charges and commission rates; this would make traditional products more transparent.
The guidelines for traditional products of life insurance will have a deadline of April 1 for re-filing of group products, and for re-filing other traditional products the deadline would be July 1st, 2013.
The recent draft on traditional product norms said that the policy holders would get back 50 per cent of their premiums, if a policy is active for three years.