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IRDAI completes 25 years of inception: Here’s a look at recent reforms reshaping insurance landscape
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
In April 2024, IRDAI introduced several regulatory reforms aimed at benefiting policyholders. Here’s more
The Insurance Regulatory and Development Authority of India (IRDAI) celebrates its Silver Jubilee on Friday (April 19). Over the past 25 years, IRDAI has been at the forefront of shaping India’s insurance ecosystem, fostering transparency, efficiency, and customer-centricity.
Inclusive approach recognised by experts
According to industry experts, IRDAI’s inclusive approach has been a hallmark of its regulatory efforts.
Vignesh Shahane, MD & CEO of Ageas Federal Life Insurance, commended IRDAI’s role in fostering a robust regulatory framework, driving transparency, and adapting swiftly to regulatory reforms under the leadership of Chairman Debasish Panda.
Venkatachalam Iyer, MD & CEO of TATA AIA Life Insurance, emphasised IRDAI’s contribution to deepening insurance penetration and fostering entrepreneurial opportunities within the sector.
Chairman Debasish Panda’s commitment to ensuring ‘Insurance for All by 2047’ has been reiterated.
With India set to celebrate 100 years of independence in 2047, IRDAI has intensified efforts in the last 10-12 months to enhance the penetration and density of life cover plans across the country.
Sanjeev Mantri, MD & CEO of ICICI Lombard, highlighted IRDAI’s initiatives aimed at developing consumer-centric insurance products, while Rakesh Jain, CEO of Reliance General Insurance, stressed IRDAI’s role in safeguarding consumer interests within the sector.
Pankaj Gupta, MD & CEO, Pramerica Life Insurance further stressed on IRDAI’s initiatives like Bima Sugam, Bima Vistaar, and Bima Vahak.
Recent regulatory reforms aimed at policyholders benefit
In April 2024, IRDAI introduced several regulatory reforms aimed at benefiting policyholders:
Final rules on surrender value: Policies surrendered within three years saw a decrease in surrender value, while those surrendered between the fourth and seventh years witnessed a marginal increase.
Mandatory e-insurance: IRDAI mandated the digitisation of insurance policies across all categories to streamline processes, enhance efficiency, and improve accessibility for policyholders.
Under this directive, policyholders can access their insurance documents digitally, with physical copies available only upon request.
This initiative mirrors the system of holding shares in digital form within a demat account.
Similar to how investors open demat accounts to manage their shares, policyholders now need to establish an e-Insurance Account (eIA) to store and access their insurance policies electronically.
Revisions to health insurance regulations: Key revisions include trimming the pre-existing condition waiting period from four years to three and lowering the moratorium period from eight years to five.
From a customer standpoint, shorter waiting periods translate to reduced uncertainty and quicker coverage for illnesses or claims against them.
This waiting period refers to the duration during which policyholders are not eligible to claim benefits for any pre-existing health conditions they might have during the purchase of the insurance policy.
Shanai Ghosh, MD & CEO of Zuno General Insurance, lauded IRDAI for its balanced approach to regulation and development, promoting innovations and digital transformation within the industry.
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