Satishwar B., MD and CEO, applauds IRDAI’s customer-centric approach outlined in its Master Circular

He says, “The latest regulatory initiatives represent a significant leap for the life insurance sector, prioritizing accessibility, transparency, and customer-centricity. Notably, the mandate for policy loans is a pivotal change, ensuring that policyholders have the liquidity they need without unnecessary barriers. Extending the free-look period to 30 days gives customers more time to review and understand their policy terms, fostering informed decision-making.

Allowing partial withdrawals for significant life events in pension products enhances flexibility for policyholders’ financial planning. The addition of health riders without policy surrender strengthens protection against health contingencies. Fair value provisions on surrenders and diverse premium payment options demonstrate a commitment to customer value.

Special Surrender Value (SSV) should be equivalent to at least the present value of the paid-up sum assured, paid-up future benefit, and accrued benefits, if any, and shall become payable on receipt of one full-year premium. With this, payouts on premature exits for policyholders making an early exit will go up.

The introduction of the Customer Information Sheet (CIS) signifies a stride towards transparency, providing clear policy details and empowering policyholders with essential information about their policy. Available for both individual and group policies and in local languages upon request, it enhances trust, simplifies decision-making, and underscores the insurer's commitment to customer satisfaction.

The circular's emphasis on end-to-end technology solutions echoes Bandhan Life’s current approach of using technology and AI for seamless buying and servicing of our products. At Bandhan Life, our cloud-native digital-first approach strategy aligns with this vision, enhancing customer experience and trust.

Overall, these initiatives will encourage prioritizing customer needs and transparency, build stronger relationships, and ensure financial well-being for policyholders and their families.”