The regulator has now extended the 'Use and File' or U&F procedure for all health insurance products and almost all general insurance products. So what is the U&F procedure? In this, insurers are allowed to market certain products without the prior approval of Irdai.
However, they need to file their product with the regulator within a certain time frame. Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance, said, "Use and File procedure essentially means that insurers can introduce their products to the market on filing with the regulator thus avoiding a long waiting duration in offering customized and innovative insurance products to buyers." What buyers should know: The newly introduced reforms are advantageous for the insurance industry.
Dr S Prakash, MD, Star Health and Allied Insurance explains, "Earlier group products were filed as U&F and retail products were filed as 'File and Use' or F&U.
The new circular provides U&F provision for all products and add on covers. This is applicable for both fresh filing and modification/revision of policies." He further said, "Insurers will now need to file the product within seven days of launch and obtain a UIN.