The Insurance Regulatory and Development Authority of India (Irdai) on June 1, 2022 extended the ‘use and file’ procedure for most life insurance products, thereby allowing insurers to launch new products without the regulator’s prior approval.
- However, the ‘use and file’ system will not be allowed in individual savings, individual pensions and annuity schemes.
- The Irdai had earlier extended similar relaxations to health insurance products as well as general insurance covers.
About ‘Use and File’ procedure?
- Under ‘Use and File’, insurers are permitted to market products without the regulator’s prior approval, thus avoiding a long wait.
- Under the existing ‘File and Use’ system, an insurer wishing to introduce a new product has to first file an application with the IRDAI and use the product for sale in the market only after getting all regulatory approvals.
- But now, insurance firms can quickly introduce new schemes with innovative features, enabling people to participate and cover their health expenses.
- Earlier, companies used to file scheme drafts with the regulator and wait for weeks and months to get clearance.
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