Life Insurance of India (LIC) has said it has asked the regulator for extending the deadline for withdrawing existing products that do not meet the new norms from October 1.
“We are awaiting approval from the Insurance Regulatory and Development Authority (IRDA). We have made this request in case approvals are not with us. I am sure that IRDA is going to take a call on this and take a decision,which is in the larger interest of investors,” LIC Chairman S K Roy told reporters here on the sidelines of an event organised by Ramakrishna Mission.
According to the regulator,all the existing group products have to be aligned with the new rules before June 30,while individual products have time till September-end.
The new guideline for traditional life insurance will have products with more benefits for policyholders,improve transparency and curb mis-selling of the traditional products.
Under this,IRDA has capped commissions,and provided for minimum sum assured and guaranteed surrender value on traditional products sold by life insurers.
Talking about LIC’s product line Roy said,”Looking at what we are trying to do is that whatever products we have in the bouquet today,we want to have similar products in the restructured versions also. That is our product strategy at this moment. We are planning to file everything that is required to be filed. We are hopeful that IRDA will take a call on this matter.”
Going forward,he said the business growth is healthy and the company is expecting a good growth.
“Business outlook is good. July and August have shown good growth. September business so far has also been very good. Overall,we are showing a healthy growth in the business,” he added.
The current quarter has seen growth in the business,but it is difficult to assume the impact of whatever changes have been brought in the restructured products by the regulator at this stage,Roy said.
“Unless the products are rolled out in the market and the distribution arm works on those products,it is difficult to predict the impact of the changes,” he said adding,”However,I am confident that our products will be well accepted by customers.”