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Thursday, October 22, 2020

Irdai comes with standardised life insurance cover ‘Saral Jeevan Bima’ – Times of India

BENGALURU: After moderate success with its standardised health product Arogya Sanjeevani and Covid-specific covers, Irdai has now come up with a standardised life insurance product “Saral Jeevan Bima.”
This will be a pure protection plan with sum insured from Rs 5 lakh upwards – with no market-links or maturity benefits. All 24 life insurance companies in India will be offering “Saral Jeevan Bima” with each insurer’s name as a suffix to the policy.
The regulator says, customers now face a plethora of choices with each life insurance product having different features, options, riders, etc. Irdai said, “Customers who cannot devote adequate time and energy to make informed choices find it difficult to select the right product. Also, products may not be available for the intended sum assured. So we felt the need to introduce a standard, individual term life insurance product, with simple features and standard terms and conditions.”
The regulator feels such a standard product will reduce instances of mis-selling and disputes at the time of claim settlement.
This product can be availed of by policyholders aged 18-65; with the policy’s maximum maturity age being 70. The policy term can vary from 5-40 years and sum assured can vary from Rs 5-25 lakh. Though IRDAI has said insurers can choose to cover beyond Rs 25 lakh.
In line with its key word of “simplicity,” the Saral Jeevan Bima policy will have no exclusions other than the suicide clause.
Mode of premium payment can be single premium, limited premium payment of 5-10 year period or regular lifelong monthly premium.
On death of the policyholder, the family will receive 10 times of the annualized premium; 105% of all the premiums paid as on the date of death; and absolute amount assured to be paid on death. For single premium policies, families will receive 125% of single premium and absolute amount assured to be paid on death.

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