Modification to Guidelines on Point of Sales (POS) – Life Insurance

• JI ir.tai ,~ INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Ref : IRDAI/LIFE/CIR/MISC/POS / /08/2017 August 4, 2017 To All the Life Insurers , .. Re : Modification to Guidelines on Point of Sales ( POS) - Life Insurance Products Reference is invited to - 1. Section 2 (i) - 'Categories of POS Products' , wherein the description of categories of POS Products is provided and 2. Annexure -I (a) - " Pure Term Insurance Product with or without return of Premium" wherein the maximum Limit of Sum Assured under the Pure Term Product was capped up to Rs 25 Lakhs ( excluding ADB Rider ) Only of the Guidelines on Point of Sales (POS) - Life Insurance Products bearing Ref. No. IRDA/LIFE/GDL/GLD/222/11/2016dated November 7, 2016. Based on the feedback received from the insurance industry, it has been decided by the competent Authority a. to include the Non-Linked, Non-Par Health Insurance products with fixed Benefits under the Sec 2(i) categories of POS products . The product parameters for the same are mentioned in Annexure-A attached to this Circular. All the other provisions in the referred Guidelines are applicable to the POS Health Products also. b. to relax the upper limit of ' Sum Assured on Death' under Pure Term Life Insurance Product under Annexure- I (a) as above and hence the modification be read as follows : Sum Assured on Death : Maximum - No Limit (subject to Non - Medical underwriting only ) This Circular is issued with the approval of the competent Authority and comes into force with immediate effect . (Nilesh Sathe) Member (Life) Encl : Annexure - A 11itwr~, mmf(K1, <il!lA<•lfll, ~-soooo4. 'ITT{CT (() : 91-040-2338 1100, ~: 91-040-6682 3334 ~ : www.irda.gov.in Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 Web.: www.irda.gov.in ANNEXURE-A POS -- Health Insurance product ( Fixed Benefit only) Non- Linked , Non -Par , Non- Medical Product only will be allowed For Individual/ Family Floater Policies only ( Not to be sold as Group insurance) Product Features/ Parameters I Eligibility : Age at entry Min -- 90 Days Max -- As per extant Health Regulations Maximum Age at Maturity As per extant Health Regulations . Policy Term Min - 5 years , Max - As proposed in F&U Application and approved by the Authority Sum Assured Minimum - As proposed under the product Maximum - Rs. 15 Lakhs ( Individual ) -- Rs. 20 Lakhs { Floater and Individual } ( Sum Assured would be in the multiple of Rs 5000 only ) Mode of Premium Annual/ Single Grace period As per extant regulatory norms Revival period As per extant regulatory norms Waiting Period Allowed Not more than first 90 Days ( For any disease) from the date of acceptance of risk Benefits : ( On diagnosis of a Disease / contingency covered ) During waiting Period -- Refund of 100% of premium Paid ( if any) ,. After expiry of waiting -- Full Sum Assured Period Maturity Benefits As proposed in F&U application and approved by the Authority Underwriting Conditions Only Non-Medical underwriting Surrender Value As per approved F&U / Extant regulatory provisions Commission . As per approved F&U application Other Features I As per extant regulatory provisions Conditions Exclusions As approved under F& U Pre- existing Disease Not Covered I as per extant regulations Portability Not Allowed Change in Sum Assured (at any time during the Not allowed term or at the time of Renewal) Post Diagnosis Survival As approved under F& U Conditions /Period Reinstatement I Renewal of Sum Assured 100%