The Life Insurance Council, the industry body representing life insurance companies, has asked the Insurance Regulatory and Development Authority (IRDA) to extend the deadline for re-filing all their existing products as per the new norms.
The guidelines require all life insurers to realign the products before October 1. The life insurance industry has to withdraw about 400 products and re-launch them under the new detailed structure .
According to V. Manickam, Secretary-General of the Council, the industry body is “confident of a positive development” from the regulator.
“We have asked IRDA for a reasonable extension of deadline because once the product is approved by them, insurance companies also have to undertake considerable work to market these new products and train their distributors and agents, which takes time,” Manickam said.
Rajesh Sud, Chief Executive Officer and Managing Director of Max Life Insurance, said if all the products are not approved, life insurers will have to discontinue them or may offer only a limited number of products after October 1.
The regulator had earlier extended the deadline from July 1 to August 1 this year.