INDIA – LIC asks for extension of deadline for meeting new guideline norms

Life Insurance of India (LIC) said it has asked the regulator for extending the deadline for withdrawing existing products that do not meet the new norms from October 1. 

“We are awaiting approval from the Insurance Regulatory and Development Authority (IRDA). We have made this request in case of approvals which are not with us. I am sure that IRDA is going to take a call on this and take a decision, which is in the larger interest of investors,” LIC Chairman S K Roy told reporters. 

According to the regulator, all the existing group products have to be aligned with the new rules before June 30, while individual products have time till September-end. 

The new guideline for traditional life insurance will have products with more benefits for policyholders, improve transparency and curb misselling of traditional products.