Irdai Mandates Policy Loan Facility in All Life Insurance Savings Products

The Insurance Regulatory and Development Authority of India (Irdai) has made the policy loan facility mandatory in all life insurance savings products to meet policyholders' liquidity needs. Irdai also extended the free look period to 30 days and permitted partial withdrawals under pension products for significant life events.

The Insurance Regulatory and Development Authority of India (Irdai) announced on Wednesday that the policy loan facility is now mandatory for all life insurance savings products. This move aims to help policyholders meet their liquidity requirements effectively.

A master circular consolidating all life insurance regulations was issued by the regulator. Among the key updates, Irdai extended the free look period to 30 days, doubling it from the previous 15 days, giving policyholders additional time to review policy terms and conditions.

This update is part of a broader reform initiative by Irdai, focused on spurring innovation and enhancing customer satisfaction. The circular also permits partial withdrawals under pension products for significant life events such as higher education, marriage of children, home purchases, and medical expenses related to critical illnesses.

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