Policy Update: Policy loan facility is now mandatory for policyholders, IRDAI approves..

Now loan facility will be available on all life insurance savings products. Insurance regulator IRDAI has made it mandatory in its master circular issued on Wednesday. With this, policyholders can fulfill their needs. Issuing the master circular, IRDAI has increased the free look period from 15 days to 30 days.

Just like the general insurance policy works, the policy loan facility in the master circular will also be used in the same way.

Decision in the interest of policyholders

IRDAI said, 'IRDAI has taken this step for reform keeping the policyholders in mind. This will increase innovation and improve customer experience'.

According to the master circular, providing a partial withdrawal facility from pension products will help policyholders handle their financial problems. This will help in children's education and marriage, buying or building a house or flat, medical expenses, or expenses on any major illness.

IRDAI said the regulator has prepared a strong system to fix its problems.

According to the circular, 'If an insurance company does not appeal against the insurance within 30 days, then the complainant will have to pay Rs 5,000 per day'.

Insurance companies have been asked to regularly update their mechanisms, rectify the financial losses of policyholders and improve long-term benefits.

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