Life Insurance companies can now launch a number of new products, including term insurance plans and other linked ones, without prior approval from the Insurance Regulatory and Development Authority of India (IRDAI).



  • Insurance regulator IRDAI recently extended the ‘use and file’ procedure for most life insurance products, thereby allowing insurers to launch new products without the regulator’s prior approval.
  • The IRDAI had earlier extended similar relaxations to health insurance products as well as general insurance covers. However, the ‘use and file’ system will not be allowed in individual savings, individual pensions and annuity schemes.
  • The ‘use and file’ system is used by non-life regulators globally.



  • The “Use and File” procedure allows insurers to launch a product first and then file its details with the regulator.
  • This helps in avoiding a longer waiting duration in offering innovative insurance solutions to customers in order to help address the dynamic environment.
  • It is a proactive initiative by IRDAI which will provide some necessary mechanisms to insurance companies who wish to bring out more innovative products in the market at a faster frequency.
  • According to IRDAI, the relaxation will result in improving ease of doing business for insurance companies as well as lead to expansion of the choices available to policyholders.


About the IRDA

  • Insurance Regulatory and Development Authority of India (IRDAI) was set up as autonomous body under the IRDA Act, 1999.
  • Objective — To protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
  • IRDA is the apex body that supervises and regulates the insurance sector in India.
  • Nodal Ministry — Ministry of Finance
  • Functions —
        • To safeguard the policyholder’s interest while ensuring a fair and just treatment.
        • To have a fair regulation of the insurance industry while ensuring financial soundness of the applicable laws and regulations.
        • Registering and regulating insurance companies;
        • Licensing and establishing norms for insurance intermediaries;
        • Promoting professional organisations in insurance;
        • Regulating and overseeing premium rates and terms of non-life insurance covers;
        • Specifying financial reporting norms of insurance companies;
        • Regulating investment of policyholders’ funds by insurance companies;
        • Ensuring the maintenance of solvency margin by insurance companies;
        • Ensuring insurance coverage in rural areas and of vulnerable sections of society.