Life insurers to have standard form for policyholders: IRDA
New Delhi: IRDA on Monday asked all life insurers to adopt a standard form for policyholders seeking insurance cover, a move which is aimed at bringing in uniformity and transparency.
The 'Standard Proposal Form' as notified by the Insurance Regulatory and Development Authority (IRDA), contains column for personal information and suitability analysis for the policyholder.
"The objective of this regulation is to provide for a standard proposal form for individual policies in life insurance that has an inbuilt flexibility for seeking specialised information that is product specific to a particular product category," IRDA said in a notification.
These guidelines has come into effect from February 16, 2013, the regulator said.
The new regulations will require insurers to have in place a process and system to assess the needs analysis' carried out for each and every proposal received and the soundness of a recommendation about a particular product.
The regulation applies to all individual policies issued by life insurance companies, irrespective of segment and type of product.