IRDAI extends ‘Use and File’ procedure to all miscellaneous insurance products

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The Insurance Regulatory and Development Authority of India (IRDAI) announced on October 13 that it will now extend the ‘Use and File’ procedure, or the launching without approval method, to products falling under miscellaneous line of insurance with a sum assured up to Rs 5 crore.

This has been done to give an impetus to insurers for innovation and promote ease of doing business in the sector, the IRDAI said in a statement.

Earlier, products with a sum assured above Rs 5 crore could be launched without prior approval of IRDAI, but those with sum assured up to Rs 5 crore still required the regulatory clearance before getting launched in the market.

"With this move, all general insurance products, are now permitted to be filed under ‘Use and File’ procedure and can be launched without any prior approval," the IRDAI said. "This will provide the vital fillip to the general insurance companies for a broad-based approach in designing and timely launch of the products commensurate to the market requirements and serve the policyholders effectively, furthering the insurance penetration in India."