Standard Life Insurance Product: New Regulatory Requirements

Introduction

Last year, the IRDAI notified the "Guidelines on Standard Individual Health Insurance Product" of 1 October 2020 with the objective of providing basic health insurance covers to customers. Towards this end, all General and Health Insurers are required to mandatorily offer a standard individual health insurance product offering a fixed set of covers to customers termed, "Aogya Sanjeevani Policy" in accordance with the directions issued by the IRDAI. 

Similarly, perhaps in recognition of the rising customer demand for pure risk term insurance products, the IRDAI has issued the "Guidelines on Standard Individual Term Life Insurance Product, "Saral Jeevan Bima"" of 15 October 2020 (Guidelines). The Guidelines aim at making available a plain vanilla, individual term life insurance product, with simple features and standard terms and conditions that would meet the requirements of an average customer.