IRDAI modifies its “Use and File” Procedure for Products

The Insurance Regulatory and Development Authority (IRDAI) has modified its “Use and File” procedure for products. A circular to this effect was issued on 31st March, 2023 and shall come into effect from 1st April, 2023.

This modification seeks to enable dynamism as well as speed to market insurance products.

Some of the changes that are contemplated by the IRDAI are as follows:

1. The documents that were required to be submitted under the above mentioned U&F circulars shall hereafter be submitted to the Product Management Committee (PMC), instead of being filed with IRDAI. The PMC shall be responsible for the final approval of the products.
2. The PMC shall be responsible to ensure that the entire set of documents required under U&F Procedure is complete, correct, digitally signed and are in compliance with the extant applicable legal and regulatory framework, and maintained by the PMC.
3. IRDAI may call for documents in respect of a few products identified on monthly basis
4. IRDAI may conduct onsite examination of U&F documents.
5. Insurer shall submit the certificate signed by the CEO in the standard format specified in Annexure-A
6. The insurer shall submit quarterly report as per Annexure-B, with respect to the products launched for the first four quarters from the date of launch of the product.