IRDAI Changes Norms for Life Insurance Products, Reduces Minimum Death Benefit in Non-linked Policies from Ten Times To Seven Times
New Delhi: The Insurance Regulatory and Development Authority of India (IRDAI) has made certain changes in some of the key norms relating to life insurance products.
According to a Gazette notification issued by the IRDAI, the minimum death benefit in the non-linked policy has been decreased from 10 times to seven times.
In the non-linked policy, policyholders will get a fixed amount if the policy is surrendered after 2 years. The revival period for these policies has been increased from 2 years to 5 years, the regulator said.
For the Unit-Linked Policies, these will become payable only after the completion of the lock-in period- only if it has a surrender value during the first 5 years.
Post the lock-in period, the surrender value shall be at least equal to the fund value as on the date of surrender.
In terms of pension products, policyholders can withdraw 25 percent of the insured during an emergency, which includes serious illness, marriage, and education of children.