Life insurance companies should submit a policy document while seeking new product approvals from the Insurance Regulatory and Development Authority.
“An endeavour should be made to simplify the language of the policy bonds/schedule to be comfortably understood by the policy holders,’’ Sudhin Roy Chowdhury, Member – Life, IRDA said in a circular.
A copy of the policy schedule, sales brochure, benefit illustration and proposal form should be sent to the life department of the regulator also at the time of filing the ‘file and use’ application for product approvals. A reference guide giving the meaning of the technical words in simple language should also be made available along with the policy bonds to be sent to the policy holders.
The insurers should display the approved policy bonds/schedule of the relevant product on their Web sites, the regulator said.
Keywords: Life insurance companies, submit policy document, seeking new product approvals, Insurance Regulatory and Development Authority, simplify language of policy document, Sudhin Roy Chowdhury, Member - Life, IRDA, said in circular