IRDAI News : IRDAI clears the decks for Galaxy Health Insurance, rolls out revised regulations for industry, policyholders

IRDAI News

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IRDAI News : The IRDAI, at its board meet, has finalised key regulations relating to Bima Sugam, higher surrender values in endowment policies and policyholder protection, besides rural and social obligations as also registration, capital structure and amalgamation of insurers.

The Insurance Regulatory and Development Authority of India (IRDAI) at its board meet on March 19 decided to grant the certificate of registration to standalone health insurer Galaxy Health and Allied Insurance, which can now commence operations. IRDAI News

It will be the seventh standalone health insurance company after insurers such as Aditya Birla Health, ManipalCigna, Niva Bupa. and so on. Galaxy is promoted by former Star Health and Allied Insurance chairman V Jagannathan. IRDAI News

This apart, it also approved a set of eight new and revised regulations, the chief ones pertaining to product regulations (primarily, changes in surrender value norms), policyholder protection, Bima Sugam and so on. “…regulatory governance… has replaced 34 regulations with six regulations and introduction of two new regulations enhancing clarity and coherence in the regulatory landscape,” the IRDAI said in a press note issued on March 22. IRDAI News

Product guidelines covering surrender charges

While the IRDAI has approved the (Insurance Products) Regulations, 2024, it is yet to put out the granular details of the changes to the draft circular issued in December 2023.  “These regulations promote good governance in product design and pricing, including strengthening of the principles governing guaranteed surrender value and special surrender value along with disclosures… Additionally, the regulations encourage the development of innovative insurance products…” the regulator said in its press release. IRDAI News

The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body established in 1999 to regulate and promote the orderly growth of the insurance and reinsurance industry in India. It is an autonomous body under the jurisdiction of the Ministry of Finance, Government of India.

The IRDAI’s main functions include:

  • Protecting the interests of policyholders
  • Regulating the insurance and reinsurance industry
  • Promoting the orderly growth of the insurance industry
  • Ensuring speedy claim settlement
  • Preventing fraudulent activities in the insurance sector

The IRDAI has played a significant role in developing the insurance sector in India. It has introduced a number of reforms, including:

  • Opening up the insurance sector to private players
  • Introducing new insurance products
  • Streamlining the claim settlement process
  • Strengthening the grievance redressal mechanism

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