Guidelines on File & Use procedures for general insurance  products

Guidelines on File & Use procedures for general insurance products

 (i) IRDA requirements are as follows to review the applications with the file and the applications under the file, based on the file and the applications received on exposure draft guidelines on the use processes. Insured contingencies under production should be clear and provide transparent covers that are the value of the insurer.

 (ii) All literature related to the product should be in simple language and publicly should be easily understandable. As far as possible, the same sequence of presentation is followed. All technical conditions should be specified in the simple language for the benefit of the insured.

 (iii) Product should be a real insurance product of insurable risk with real risk transfer. Optional risk transfer or financial guarantee business in any form will not be accepted.

 (iv) The insurance product should follow all the requirements of the protection of the rules of policyholders. 

(V) The insurer should use as much as possible, similar words or all their products to describe the same cover. For example, there should be similar words in all products, based on the renewal of insurance, based on insurance, appropriate hardness, arbitration etc., all products. 

(VI) Price of products should be based on proper data and technical support. 

(vii) The rules and conditions of the cover will be reasonable between insurers and insured

 (VIII) Margins built in rates will be consistent with the insurer's experience in terms of commissions, management costs, contingencies, contingencies and profits. 

(Ix) insurers need to take sure that the competition will not lead to an unwanted rate cutting and other inappropriaunderwriting practice.

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