"Minor modifications that insurers initiate after feedback from customers can now happen much quicker. This includes additional frequencies of premium payment and add-on riders," says Shreeraj Deshpande of Future Generali
Insurance regulator IRDA has overtime brought in multiple regulatory changes to make them more customer friendly. Recently, the insurance regulator came out with another such change to ease the process for making minor changes in existing policies.
"Currently, insurance companies have to follow the complete filing process in case they have to make a modification in the existing approved product. The minor modification ruling is a welcome move. It simplifies processes and empowers insurers to make minor changes in existing policies with ease," says Shanai Ghosh, CEO Designate, Edelweiss General Insurance.
These changes are generally introduced on the basis of consumer feedback.
"Minor modifications that insurers initiate after feedback from customers can now happen much quicker. This includes additional frequencies of premium payment and add-on riders," says Shreeraj Deshpande, Chief Operating Officer, Future Generali India Insurance Company Limited.
Following are some of changes that IRDAI has allowed insurance companies to implement in the existing policies using the certification method:
"This is a welcome move by the regulator as it enables insurance companies to make modifications in short notice and introduce them in the market. For example, if a product has been performing well for an insurer and it decides to pass on the benefit by way of reduced premiums to the customer, it can be done quickly now. Similarly, if there is a requirement to increase the maximum entry age for a product (the maximum age at which a customer can first purchase the policy) the same can be done without going through the normal filing procedure," says Subramanyam Brahmajosyula, Head - Underwriting and Reinsurance, SBI General Insurance.