The Insurance Regulatory and Development Authority of India has allowed distribution of all microinsurance products through point-of-sales as it aims to accelerate insurance penetration in the country, The Hindu Business Line reports.
IRDAI in a circular agreed to the suggestions of insurance companies by abandoning the practice of prefixing the word PoS on life, general and health products sold through PoS.
The regulator said it has received representations from insurance companies requesting to do away with the prefix in the product name.
IRDAI said the requirement was to identify the person involved in the sales process.
The IRDAI (Protection of Policyholder’s Interest) Regulations, 2017, under the matters to be stated in life, general and health insurance policy, makes it mandatory to give the details of the person involved in the sales process.
“By virtue of this requirement, the need to have the prefix ‘PoS’ becomes redundant as the insurance policy itself will carry the details of the person selling such a policy,” the regulator said.
The Authority, “hereby, discontinues requirements” of using the word PoS prefixed before the PoS product name for life, general and health products.
Similarly, the IRDAI said advantages such as higher insurance penetration, lower prices, increased choice to customers – which would otherwise accrue to the policyholder by making microinsurance products available through PoS channels – are being lost.
“Therefore, the Authority after reviewing the position, hereby allows all Micro Insurance products of Life, General and Health insurance to be distributed through the PoS also,” the circular said.
Business Line adds that, on the manner of dealing with cases of health/personal accident policies where sum insured crosses the limit specified under the PoS guidelines, IRDAI said the sponsoring entity is allowed to recognise such policies as being sourced by the PoS and pay the fees to the PoS.
