IRDAI issues Guidelines on Automatic Allotment of Unique identification Number for 'Use and File' Products/Add-on covers through BAP

Aug 03, 2018 | by Avantis RegTech Legal Research Team


The Insurance Regulatory and Development Authority of India (IRDAI) vide notification dated July 31, 2018 has issued guidelines on Automatic Allotment of Unique identification Number for 'Use and File' Products/Add-on covers through Business Automobile Policy (BAP).

The Guidelines on Product Filing Procedures for General Insurance Products provides the regulatory framework for the `Use and File` apart from `File and Use` procedure for general insurance products. As far as the `Use and File` procedure is concerned, the responsibility has been placed on the Product Management Committee (PMC) and senior management of insurers to ensure proper due diligence when it comes to product design and protection of the policy holders’ interests.

Para 7.2 (III) of the said Guidelines describes `Use and File` procedure to be followed subject to the conditions listed therein and information to be provided in the filing. The Authority, based on the PMC recommendations and CEO/Appointed Actuary/Lawyer certifications about the regulatory compliance, has been assigning Unique Identification Number (UIN) to the said products.

The BAP General Insurance Product Module is now enabled to generate UIN by Insurers upon filling the information in Form A and uploading the required documents. This additional feature in BAP is being made accessible with effect from August 01, 2018.

The conditions for UIN allotment are:

·         Products:

 

a.       The Annual product performance report to be submitted to Authority by AA latest by 30thJune in respect of the preceding year. The Product Management committee shall also review the performance of the product annually

b.      The product shall be offered to only commercial customers with initial Policy Sum lnsured exceeding RS. 5 Crores strictly in accordance with the terms and conditions and other features of the product as filed with the Authority

c.       The product shall comply with IRDAI (Protection of Policyholders' lnterests) Regulations 2017.

d.      The Company shall strictly adhere to the provisions in the lnsurance Act 1938, IRDA Act 1999, Regulations and Circulars/Guidelines issued from time to time

e.      The policy wordings of the product as filed with the Authority shall be immediately displayed in Company's website.

 

·         ADD ON Covers:

a.       The Annual Add On performance report to be submitted to Authority by AA latest by 30th June in respect of the preceding year. The Product Management committee shall also review the performance of the Add On covers annually.

b.       The Add-Ons shall be offered together with the product that is given only to commercial customers with initial Policy sum lnsured exceeding RS. 5 crores strictly in accordance with the terms and conditions and other features of the product as filed with the Authority

c.       The lnsurer shall account all Add On premiums separately in premium computation table provided to insured.

d.      There shall be clear distinction in the prospectus/Brochure Wordings about the conditions, exclusions necessarily using bold letters.

e.      There shall be clear demonstration in the prospectus and other policy literature that the Add-Ons are optional.

f.        The wordings of Add-Ons as filed with the Authority shall be immediately displayed on Company's website.

UIN allotted for the above Add-Ons shall be used in all the product related documents which include sales material and policy schedule / contract.

[Ref. No: IRDA/NL/GDL/F&U/115/07/2018]

URL: https://www.irdai.gov.in/ADMINCMS/cms/Circulars_Layout.aspx?page=PageNo3518


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