- 75 to 80 insurance policies will be closed by 30 November under new rules of IRDA
- The new rules will apply to insurance policies sold after December 1
Utility desk. The new rules of non-linked and linked insurance policy issued in July by the insurance regulator IRDA will come into effect from 2020. All insurance companies must change the insurance products by November 30 as per the new rules. According to IRDA, insurance companies have been allowed to increase or decrease the premium of the policy by 15%. IRDA has asked all insurance companies to make changes in the insurance policy by November 30 as per the new rules.
Insurance policy will have to be changed by 30 November
LIC will close many policiesAs part of the changes, the country’s largest life insurance company Life Insurance Corporation (LIC) has also announced the closure of more than two dozen individual insurance policies, eight group insurance plans and seven to eight rider plans by 30 November. However, LIC said that it will relaunch these policies in future under IRDA rules. According to an estimate, 75 to 80 insurance policies will be closed by November 30 under the new rules of IRDA.
New insurance policy will be launched after 29 February 2020IRDA has asked all insurance companies to change their products under the new rules by 30 November 2019. IRDA has said that products which cannot be changed under the new rules can be withdrawn by 30 November 2019. 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.
Old policy will not have any effectIRDA has said that its new rules will apply to insurance policies sold after 1 December 2019. There will be no effect on the insurance policy already issued. The premiums and benefits of the old insurance policy will continue as before.