NEW IRDA NORMS FOR NONLIFE COVERS

With the free pricing (detariffed) era for general insurance industry nearing, the Insurance Regulatory and Development Authority (IRDA) has announced new guidelines for ‘file and use’ requirements for general insurance products. Keeping in mind the interests of policyholders, it has retained the authority of suspending the sale of products at anytime if they appear inappropriate and unfair in terms of rates and terms and conditions. IRDA has made it clear that the insurers would be required to justify the rates and terms and conditions of insurance products offered and said it would not accept a mere statement that the risk is rated ‘on merits’.