Standard Individual Immediate Annuity Product, “Saral Pension”
Guidelines on Standard Individual Immediate Annuity Product, “Saral Pension”- IRDAI Circular
A: Preamble:
Indian life insurance market currently has several individual immediate annuity products marketed by life insurers, with each product having its own features, terms and conditions and annuity options. With a view to having uniformity across Insurers, and to make available a product by all Life Insurers that will broadly meet the needs of an average customer, it is felt necessary to introduce a standard, individual immediate annuity product, with simple features and standard terms and conditions. Such a standard product will make it easier for the customers to make an informed choice, enhance the trust between the Insurers and the insured, and reduce mis-selling as well as potential disputes.
Therefore, in exercise of powers under Section 34 (1) (a) of the Insurance Act, all Life Insurers are directed to offer the following product mandatorily.
B. The Standard Immediate Annuity Product:
1) The standard individual immediate annuity product shall be called, “Saral Pension”, prefixed by the Insurer’s name.
2) The product offers the following annuity options, and no other options:
a) Life annuity with 100% Return of Purchase Price; and
b) Joint Life annuity with a provision of 100% annuity to the secondary annuitant on death of the primary annuitant and Return of 100% Purchase Price on death of last survivor.
3) The Insurers shall have to file the product as per the above parameters and in compliance with the extant regulatory provisions through File and Use (F&U).
4) The policy document and the terms and conditions of the Standard Product shall be in the format specified in Annexure -1 to this Circular.
All Life Insurers permitted to transact new business shall mandatorily offer the standard product with effect from 1st April, 2021. The product may be filed by the Insurers latest by 28th February, 2021.
This is issued with the approval of the Competent Authority.
