in a government hospital or in any institute recognised by the government or any accredited institute by the Quality Council of India or the National Accredition Board on Health.
The revised guidelines, which were issued in response to representations by the industry to the regulator, will be applicable with immediate effect.
What the guidelines say
* All new insurance products will be divided into three broad categories — traditional, variable and unit-linked plans
* Insurers will have to withdraw all existing products and come out with new ones
* However, they will continue to renew old policies where the contract had already been made with the policyholders
* All traditional products will have a higher death cover
* For regular premium policies, the cover will be 10 times the annualised premium paid for those below 45 and seven times for others
* For all Ulips, companies will have to inform policyholders about the reduction in yield of their products on a monthly basis. Also, under the new norms, all variable insurance plans will guarantee a certain minimum rate of return at the beginning of the policy
* All variable insurance products will be treated at par with Ulips and these products will also follow the same commission package currently applicable for Ulips
* The new norms have reduced the commission on short-term policies and linked the quantity of commissions to the premium paying period for all products.
* For Ulips, the lock-in period will continue to be five consecutive years from the date of commencement of the policy
* For pension products, companies will have to offer insurance cover throughout the deferment period or offer riders
* The sum of all rider premiums attached to the pension product cannot exceed 15% of the premium paid for the pension policy
* Such rider premiums will be separately accounted for and cannot be included in arriving at the assured benefit.
To revive a discontinued policy, the insurer will collect all due and unpaid premiums without charging any interest or fee