Insurance companies have approached the Insurance Regulatory and Development Authority (Irda) for review of 22 pension products fearing they may not be conforming to the regulator's guidelines pertaining to assured returns.
"Insurance companies had filed 22 revised products as on date out of which 21 products were filed only in the month of December, 2011," Irda said.
The Irda in November 2011 had asked all insurers selling pension products to disclose in the policy document maturity benefits for customers or else withdraw them from January 1, 2012.
As per the guideline, policy documents must explicitly define assured benefit in case of death of the policy holder.
While filing the revised products, the insurers have also sought certain clarifications on the guidelines.
Clarifying the doubts in the event of the death of a policy holder, Irda said "...During the term of the contract, the successor to the policy holder shall be entitled to receive a sum equal to the premium paid at the guaranteed rate of return".
Irda also said the insurer offering pension products shall guarantee either a non-zero rate of return on premiums paid or an absolute amount and it should be disclosed at the time of purchase of the policy.
There are 23 life insurance companies operating in India selling pension schemes.
