IRDA hints at curbs on NAV-based products

MUMBAI: The insurance regulator today said it was examining the high-guaranteed net asset value ( NAV) products and will take a decision on them soon.

"The high guaranteed NAV products can be misunderstood and it requires regulatory call soon. We cannot keep it hanging for long," Insurance Regulatory and Development Authority ( Irda) Chairman J Hari Narayan said here on the sidelines of a CII Insurance Summit.

When asked about the expected time frame for the non-life IPO guidelines, he said, "the norms for non life will come out shortly".

Earlier in June, the regulator had issued draft IPO norms for life insurers. Sebi has already finalised the guidelines, however, there is some technical work left after which the final norms will be out soon, Narayan said.

Replying to a query on de-tariffing the third party motor pool, Narayan said there is no immediate plans for it. "We don't have any immediate plans to de-tariff the third party motor pool," he said.

Highlighting the importance of increasing the penetration of micro-insurance products, Narayan said, even as the industry has done excellent work in this segment, there is a need for continuity of transactions as at present there are only annual products.

There is also a lack of efficient delivery of the products by the industry and hence the rural and social sector obligations may suffer, he added.

About pension products, he said, most of them were financial accumulation offerings.

"When we sell pension product it should be that. However, the industry should also have financial accumulative products designed for the young people," Narayan said.