The Insurance Regulatory and Development Authority of India (Irdai) has allowed insurance companies to offer health and most general insurance products to buyers without its prior approval.
regulator Now the ‘use and file’ or U&F process has been extended to all health insurance products and almost all general insurance products.
So what is the U&F process? In this, insurance companies are allowed to market certain products without prior approval of IRDA. However, they are required to file their product with the regulator within a certain time frame.
Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance said, “The use and file process essentially means that insurers can market their products upon filing with the regulator and provide buyers with customized and innovative insurance products. You can avoid the long waiting period in the offer.”
What buyers should know: The newly introduced reforms are beneficial to the insurance industry. Dr S Prakash, MD, Star Health & Allied Insurance explains, “Earlier the group products were filed as U&F and the retail products were filed as ‘File and Use’ or F&U. The new circular provides for U&F provisions for all products and adds cover. This is applicable for both new filings and revision/amendment of policies.” He further added, “Insurers will now have to file a product and obtain a UIN within seven days of launch. Insurers should be aware that this is applicable for all products including Pilot and Combi products. The new guidelines will enable the industry to provide products to the industry. Will help launch. faster. It places a lot of responsibility on insurers. While the regulator has given freedom to the industry, it will also require insurers to act more responsibly.”
Insurers should ensure that product filing is done as per Board approved U&F policy and see that product pricing is viable, self-sustaining and economical. Premium revision should be based on the claims made ratio (ICR) to make the product viable and sustainable, while ensuring that insurers maintain proper data. “If any insurer is found to be non-compliant, the regulator may ask them to withdraw the product and/or withdraw the U&F facility for a specified period,” Prakash said.
With the introduction of these norms of ease of product filing, buyers will have the opportunity to choose from the many insurance products available in the market. However, they need to be more careful while selecting newly launched products, especially Pilot and Combi products, as products can be withdrawn by insurers on grounds of inadequate sales or non-profitability of the product, a The expert said.