IRDAI New Rules: IRDAI has merged six regulations and issued notification of unified regulations…
Many changes have been made in the rapidly changing insurance sector. Insurance regulator IRDAI has notified many new regulations for this. The regulations notified by IRDA also include rules related to policy surrender charges.
This is why the merger was done
IRDA gave information about notifying the new regulations in a statement. He said that in the IRDA (Insurance Products) Regulations 2024, six regulations have been merged into a unified framework. The insurance regulator says that the purpose of merging various regulations is to enable insurance companies to meet the rapidly changing demands of the market, make doing business easier and expand the reach of insurance.
Changes will be effective from April 1
These changes made by the insurance regulator are going to be implemented from April 1, 2024 i.e. the new financial year. The current financial year 2023-24 is ending after a few days on 31st March. After that the new financial year 2024-25 will start from April 1, 2024. According to IRDA, the implementation of the new rules will ensure that insurance companies follow best management practices.
Surrender value will increase
One of the major changes in the new regulations of IRDA is regarding the charge on policy surrender. If an insurance holder closes his insurance policy before the maturity date, then the insurance companies levy some charges for it, which is called policy surrender charge. According to IRDA, now if an insured surrenders the policy in the fourth to seventh year, then the surrender value may increase slightly.
An important meeting was held this month
The insurance regulator had given approval to merge various regulations this month. IRDA held a meeting on March 19, in which consolidated regulations based on eight principles were approved. Before that, the regulator had conducted a detailed review of the regulatory framework of the insurance sector, after which changes were made.
