LIC decision of IRDAI's Linked & Non Linked product midification guide lines shortly

*Dear Comrades,*

The long-awaited Gazette notification of Insurance Regulatory and Development Authority of India (Non- Linked Insurance Products) Regulations, 2019 and Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019 have been issued on 10.7.2019. The new “IRDAI Product Regulations 2019” have many new changes which have to be complied by all the Insurance Companies. The major changes are Revival period (Extended from 2 to 5 years), surrender and paid-up value, Suicide clause, Commencement of Risk in minor lives, Change in Minimum / Maximum premium, Extension of premium table to higher/lower ages and/or to longer/shorter premium payment terms and policy terms etc. The above changes will impact the premium structure of the policies already in force. IRDA has laid down guidelines for all the insurance companies for modification/withdrawal of existing products and to comply with the new “IRDAI Product Regulations 2019”. The Gazette notification includes the very special point for benefit of agents and policyholders, provisioning revival of policies from 2 years to 5 years. Now *the new rule for revival would be, the period of five consecutive years from the date of first unpaid premium, during which period the policyholder is entitled to revive the policy which was discontinued due to the non-payment of premium for Non-Linked insurance products and for Unit Linked Insurance products the new rule for revival would be, period of three consecutive complete years from the date of first unpaid premium during which period the policyholder is entitled to revive the policy which was discontinued due to the nonpayment of premium. We profusely thank our Resident Secretary (Hyderabad) Shri A.Pratap Reddy ji who was continuously monitoring and pursuing the matter till it is brought to its logical conclusion. The following guidelines are issued to all the insurance companies by IRDA, 
1) All the insurers shall examine and ensure that all the existing products on sale are compliant with the new regulations. In respect of the existing products and riders which comply with the new regulations, a certificate duly signed by the Appointed Actuary and countersigned by the CEO/Chairman of the Insurer shall be submitted to IRDA. 
2) If the products and riders require modifications to conform to the new provisions, the insurers shall file the modified File and Use documents for modifications to the existing products and riders to comply with the new regulations. 
3) All the existing products and riders not in conformity with the IRDAI regulations shall be withdrawn on or before 30 November 2019. 
L.I.C is also examining all the existing products and riders to comply as per the new regulations. The premium rates are being examined if the changes can be absorbed. In the recently held NEC at Lucknow on 12th & 13th October the above matter was informed to all the members. Now *LIC has taken a positive decision* and is expected to give clarification regarding the issue.

All the members are requested to *wait for the official information from the management, expected in a day or two.*

*Regards,
*Vivek Singh.*
 SG-NFIFWI