Document Detail

Title: Circular
Reference No.: IRDAI/LIFE/CIR/MISC/ 060 /03/2020
Date: 09/03/2020
Clarifications/Modifications to the Master Circular on Point of Sales Produ





IRDAI/LIFE/CIR/MISC/ 060/03/2020

6th March, 2020


Clarifications/Modifications to the Master Circular onPoint of Sales Products and Persons – Life Insurance dated 2ndDecember, 2019


Afterexamining the requests of certain Life Insurers and representation of LifeInsurance Council on the Master Circular on Point of Sales Products and Persons– Life Insurance (hereinafter referred to as “Master Circular”) ref No.IRDAI/LIFE/CIR/MISC/215/12/2019 dated 2nd December, 2019, the followingclarifications/modifications are issued by exercising the powers vested underClause 27 of the Master Circular with immediate effect.


1. Clause 26 ofthe Master Circular is substituted by the following:


In cases of other than Single Premium mode,where premium paying term (PPT) is different from the policy term (PT) –

(i)                 PPT shall not be less than fiveyears.

(ii)               The PPT being different frompolicy term shall be clearly communicated to the prospect at the Point of Saleand in KFD.


2. Clause 16 of theMaster Circular is substituted by the following:


16.1 The existing Non-POS productswhich meet the parameters of the allowed categories of POS Life Insuranceproducts may be filed, subject to the boundary conditions as applicable to POSLife products, under existing provisions of “minor modification”, enclosingKFD. The Waiting Period clause, if applicable, shall continue to be made partof proposal form as well as KFD. The minor modification should also containthe certificate of CEO and Appointed Actuary of the Life Insurer that theexisting product meets the applicable parameters mentioned in the Annexure IIto the Master Circular.


16.2 The Insurers shall ensureadequate IT systems and internal controls so that POSP-LI sell policies onlyupto the allowed POS Life product parameters. IT systems shall also capturethe POS Life policies sold through regular non-POS channels. Insurers shallsubmit a certificate stating that their existing IT systems and internalcontrols are in compliance to these Guidelines, signed by CEO and AppointedActuary both in the case of minor modifications and File and Use application incase of new products where POSP-LI is also part of distribution channel. Nochange in POS Agency Code should be allowed once the policy master record iscreated except for orphan policies in which case change may be allowed afterfollowing due process.


16.3 The gap of at least one yearfrom the last approval/modification of the product mentioned in the Circular“Use and File procedure for certain modifications under existing products andriders offered by Life Insurers” bearing No. 124 dated 26th July,2019 is not applicable to these Circular provisions.

16.4 The Insurers may continue tooffer existing POS products till March 2020 and ensure appropriate systems andsales readiness prior to modifications of the existing Non-POS products.


3. The Maturity Benefit mentioned in Annexure II (b) ofthe Master Circular (under Non-Liked, Non-Participating Endowment Product) tobe read as “Guaranteed Maturity Benefit in absolute amount”.

4. In Annexure-V of the Master Circular, signature ofChief Compliance Officer is substituted for that of AA and CEO.

5. Monthly review of complaints of Unfair BusinessPractices and mis-selling for business completed through this Channel must bedone and corrective action initiated.



(K. Ganesh)


Member (Life)


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