Immediate Annuity Products · IRDAI/Life/CIR/MISC/188/09/2022
IRDAI circular IRDAI/Life/CIR/MISC/188/09/2022 · 13 Sept 2022
Summary
Check the official recordWhat changed
Life insurance companies must accept the exit form submitted by National Pension System retirees as the proposal form for immediate annuity products. This change removes the requirement for a separate proposal form. Insurers must also adopt the Aadhaar-based Jeevan Praman system for life verification of senior citizens who receive annuity payments. These requirements facilitate ease of doing business and simplify the onboarding process for retirees. The Insurance Regulatory and Development Authority of India issues these directions under the Insurance Act, 1938. The requirements of Section 41 and Section 45 of the Insurance Act, 1938 are compliant as no direct solicitation of business occurs. This circular takes effect immediately.
What you must do
- Life insurance companies must accept the exit form submitted by an NPS retiree as the proposal form.
- Life insurance companies must adopt the Aadhaar-based Jeevan Praman system for life verification of senior citizens.
Document text
[Image omitted. See the official document.]
भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
Cir No: IRDAI/Life/CIR/MISC/188/09/2022
Date: 13 September 2022
To,
All Life Insurers
Subject: - Immediate Annuity Products
-
This has reference to the immediate annuity products offered by the life insurance companies to the subscribers of NPS retirees. In order to offer these products, life insurance companies in accordance with Regulation 8 (1) of IRDAI (Protection of Policyholders' Interests) Regulations, 2017, are using proposal form.
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In this regard, currently all insurance companies to offer immediate annuity products, collect proposal form from the NPS retirees. However, it has been observed that, PFRDA is collecting exhaustive exit form from the NPS retirees which captures necessary details which insurance companies require in the proposal form.
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Given the duplication and to facilitate ease of doing business and simple onboarding of NPS retirees for immediate annuity products, after due consultation with the industry, IRDAI in exercise of power conferred under Section 14(2) (e) of the IRDA Act, 1999 and Section 34 of Insurance Act, 1938 issues the following direction:
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(i) The Exit Form submitted by NPS retiree must be considered as the proposal form, for offering the immediate annuity product by the insurance companies.
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(ii) In order to facilitate ease of living for all senior citizens who are receiving annuity payments the current framework of Aadhar based authentication for life verification certification such as Jeevan Praman, a Govt. of India initiative on biometric enabled digital service for pensioners, to be adopted.
सर्वे नं/ S.No: -115/1 फाइनेंशियल डिस्ट्रिक्ट, गच्चीबाउली /Financial District, Gachibowli नानकरामगुडा/Nanakramguda हैदराबाद /Hyderabad – 500032 दूरभाष:/Phone No: 040-20205000
[Image omitted. See the official document.]
भारतीय बीमा विनियामक और विकास प्राधिकरण INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
- In this regard, the requirements of Section 41 and Section 45 of Insurance Act 1938 shall be considered as compliant as no direct solicitation of business is involved.
The circular comes into force with immediate effect.
MEENA KUMARI JAGGALI Digitally signed by MEENA KUMARI JAGGALI Date: 2022.09.13 10:46:44 +05'30'
CGM (Life)
सर्वे नं/ S.No: -115/1 फाइनेंशियल डिस्ट्रिक्ट, गच्चीबाउली /Financial District, Gachibowli नानकरामगुडा/Nanakramguda हैदराबाद /Hyderabad – 500032 दूरभाष:/Phone No: 040-20205000
Source details
- Source
- Insurance Regulatory and Development Authority of India
- Type
- circular
- Published by source
- 13 Sept 2022
- Document number
- IRDAI/Life/CIR/MISC/188/09/2022
- Effective date
- 13 Sept 2022
- Coverage area
- insurance