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New rule of IRDAI: IRDAI held a meeting on 19 March. In which the insurance regulator has given permission to merge various rules this month. Giving information about the notification of the new rules, IRDA said in a statement that the IRDA (Insurance Products) Regulations 2024 have merged six rules into a unified framework. The insurance regulator says the merger of various regulations is aimed at enabling insurers to meet rapidly changing market demands, improving ease of doing business and widening the reach of insurance.
These changes will be effective from the new financial year
These changes made by the insurance regulator will be effective from April 1, 2024 i.e. the new financial year. The financial year 2023-24 ends on March 31. According to IRDA, the implementation of the new rules will ensure that insurance companies follow best management practices.
surrender value will increase
A major change in the new rules of IRDAI is related to the charges on policy surrender. If a policyholder surrenders his insurance policy before the maturity date, insurance companies charge certain fees, which are called policy surrender charges. According to IRDA, now if an insured surrenders the policy in the fourth to seventh year, the surrender value may increase slightly.