Life Insurance companies have filed a over 60 new unit linked insurance policies (ULIP) for approval with the I Insurance Regulatory and Development Authority (IRDA) in just two days as they rushed to meet the 31 August deadline.
The IRDA had asked insurance companies to come out with new products that conform with its policyholder-friendly regulations and they have to get the new products cleared by IRDA sufficiently early to start selling them from 1 September.
The IRDA had asked life insurers to design and file new products in conformity with the new ULIP regulations.
The new regulations issued by the IRDA emphasises on returns to policyholders as against the current practice of high agent commission paid by the companies that tends to squeeze bonuses of policyholders.
While the IRDA actuaries are looking into the details of the new products on offer, the regulator said products that conform to regulatory norms would face no delays while low-quality products may face hurdles.
The changes in the regulatory norms would mean a mad rush for starting sale on 1 September or a postponement of new ULIP product launches to at least 15 September.
Insurance companies say they will face the problem with 31 August NAV (net asset value) of policies sold after that date.