LIC asks IRDA for extension of deadline to meet new guideline norms

Posted By: Religare
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LIC asks IRDA for extension of deadline to meet new norms
State-owned, Life Insurance Corporation of India (LIC) has asked the regulator for extending the deadline for withdrawing existing products that do not meet the new norms from October 1.

According to the regulator, all the existing group products have to be aligned with the new rules before June 30, while individual products have time till September-end, said the media report.

"We are awaiting approval from the Insurance Regulatory and Development Authority (IRDA). We have made this request in case approvals are not with us. I am sure that IRDA is going to take a call on this and take a decision, which is in the larger interest of investors," LIC Chairman S K Roy told reporters on the sidelines of an event organised by Ramakrishna Mission.

Moreover, the new guideline for traditional life insurance will have products with more benefits for policyholders, improve transparency and curb mis-selling of the traditional products, added the media report.

Under this, IRDA has capped commissions, and provided for minimum sum assured and guaranteed surrender value on traditional products sold by life insurers.

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