The Insurance Regulatory and Development Authority of India (IRDAI) is conducting a comprehensive review of regulations to improve the business environment, reduce compliance burdens for stakeholders, and safeguard the interests of policyholders. Insurance Councils were tasked with submitting recommendations, leading to the formation of the Regulations Review Committee (RRC). The RRC proposed unified regulations on the Protection of Policyholders' Interests and Allied Matters of Insurers, covering various aspects such as premium receipt, policy nomination, assignment, insurance advertisements, and disclosure. The proposed draft, titled "Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests and Allied Matters of Insurers) Regulations, 2024," consolidates provisions from multiple existing regulations to streamline and enhance regulatory frameworks.
The revised draft exposure is much more simplified and less specific in nature. For example in the existing PPHI guidelines the regulations are very specific such as the TAT for completing survey, payment of claim etc. Draft exposure guidelines are more general in its nature such in respect of claims it mentions that insurers must settle the claim in a timely manner. Through this the authority seems to be becoming less prescriptive but still customer centric in nature.
Once finalised and brought into existence the new "PPHI & Allied Matters of Insurers" regulations would be combining below 8 regulations into 1
The Insurance Regulatory and Development Authority (Manner of Receipt of Premium) Regulations, 2002;
The Insurance Regulatory and Development Authority of India (Places of Business) Regulations, 2015;
The Insurance Regulatory and Development Authority of India (Fee for registering cancellation or change of nomination) Regulations 2015;
The Insurance Regulatory and Development Authority of India (Fee for granting written acknowledgement of receipt of Notice of Assignment or Transfer) Regulations, 2015;
The Insurance Regulatory and Development Authority of India (Issuance of e-Insurance Policies) Regulations, 2016;
Insurance Regulatory and Development Authority of India (Outsourcing of Activities by Indian Insurers) Regulations, 2017;
The Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests) Regulations, 2017;
The Insurance Regulatory and Development Authority of India (Insurance Advertisements and Disclosure) Regulations, 2021
IRDAI has provided time till 5th March to all insurer's to go through and provide suggestions against the draft.
Download the draft regulations from the link below
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