Utility desk. Insurance Regulatory and Development Authority (IRDA) extended the date for implementation of new guidelines for linked and non-linked life insurance policies. According to the notification of IRDA, the new policy rules will come into effect from February 1. Now insurance companies can change the policy till 31 January. Under the new guidelines, all insurance companies have to change their policy. IRDA gave time till 30 November 2019 to the insurance companies. There is no change in other dates.
Companies have announced the closure of many insurance policies
After the new guidelines of IRDA, the insurance companies have announced the closure of many insurance policies. Life Insurance Corporation (LIC), the country’s largest life insurance company, has announced the closure of more than two dozen insurance policies, including individual insurance policies, group insurance plans and rider plans. Apart from this, other companies have also announced the closure of more than 50 insurance policies.
Irda, the new insurance policy to be launched after 29 February 2020, has asked all insurance companies to change their products under the new guidelines. IRDA has said that products which cannot be changed under the new rules can be withdrawn. The products which the insurance companies are withdrawing can be changed within three months i.e. by 29 February 2020, and after that they can be re-launched as a new product. IRDA says that its guidelines will apply to the new insurance policy. This will not have any effect on the current insurance policy. The premium and benefit of the old insurance policy will continue to be applicable as before.