The Insurance Regulatory and Development Authority of India (IRDAI) has made new rules for life and health insurance policies. Now, insurers cannot collect premiums upfront unless the policy can be issued immediately after a health declaration. This change aims to prevent customer money from being held by insurers before the policy is approved and to avoid refund issues if a policy gets rejected or requires more steps.
For policies that need medical checks, insurers must first approve the proposal before asking for the premium. This means insurance agents will need to visit customers twice—once for documents and then again to collect the premium.
IRDAI also requires insurers to be more transparent. They now have to give customers a detailed information sheet about the key features, benefits, and exclusions of the policy. These documents can also be provided in regional languages if requested.
Additionally, life and health insurance policies now offer a 30-day “free look” period. This allows customers to review their policy and cancel it without losing their premium within this time frame.
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