IRDAI updates on Insurance
Life Insurance
Continuity of Bank/RRB Distribution (Apr 2025)
IRDAI ensured that after merger of Regional Rural Banks (RRBs), all existing policies continue smoothly.
What this means: If you bought a policy via an RRB branch, servicing and renewals will continue without disruption.
e-Policy & Repository Amendment (Jul 2025)
Stricter tech/audit norms for Insurance Repositories and e-policy issuance.
What this means: Holding policies in e-form is safer and ensures faster servicing, endorsements, and claims.
Internal Insurance Ombudsman – Draft (Jul 2025)
Proposal for an independent Ombudsman within each insurer for grievance resolution (up to ■50 lakh). Still at draft stage.
What this means: Expect quicker complaint redressal once finalized—fewer escalations needed to external Ombudsman.
Health Insurance
Air India Flight 171 Claim Advisory (Jun 2025)
Special facilitation for affected passengers/families; insurers told to fast-track claims (life, mediclaim, PA, travel). What this means: In large accidents/disasters, IRDAI directs insurers to ease documentation and speed up settlements.
Star Health Penalty (Jul 2025)
IRDAI fined Star Health for cyber security lapses.
What this means: Stronger enforcement means our personal health data will be handled with more care.
Common to Life and Health
Data Maintenance & Sharing Rules (Jul 2025)
Clarification on insurers’ responsibility to securely maintain and share data with IRDAI.
What this means: Expect better data quality, smoother portability, and stronger privacy safeguards.
Policybazaar Penalty (Aug 2025)
IRDAI fined Policybazaar ■5 crore for regulatory violations.
What this means: Tighter checks on distributors reduce risks of mis-selling. Always check Key Features Document (KFD) and disclosures.
For Policy Holders
✅ For Health Insurance Holders
- Reduced Waiting Period: Pre-existing disease waiting time is now just 3 years (earlier 4).
- Premium Protection: Once fixed, your premium cannot be increased during the policy term.
- Installment Option: You can now pay premiums in monthly/quarterly installments.
- No Age Limit: At least one health policy must be available regardless of age.
- Mental Health Coverage: Insurers must now offer inclusive mental health benefits.
✅ For Life Insurance Holders
- Higher Surrender Value: You get better returns if you surrender your policy early.
- Simplified Claims: Faster and more transparent claim settlement process.
- Suitability Check: Advisors must ensure products match your financial goals.
- No Upfront Payments: You don’t need to pay premiums while submitting a proposal form.
✅ General Benefits for All Policyholders
- 30-Day Free Look Period: More time to review and cancel your policy if needed.
- Customer Info Sheet (CIS): Clear summary of your policy in regional languages.
- Distributor Verification Tool: Easily check if your advisor is IRDAI-authorized.
Advisor Pitch Tips
Highlight that e-policies are now safer encourage clients to open/update e-insurance accounts.
Reassure on data security & grievance redressal builds trust.
Stress that IRDAI is actively monitoring insurers & intermediaries consumer protection is stronger than ever.
Remind clients about continuity even after bank/RRB mergers.
