New Delhi, April 6: The Insurance Regulatory and Development Authority (IRDA) is likely to ask life insurers to file reports later this month indicating that they have complied with its directive to furnish illustrations whenever they hawk their policies to prospective customers.

“The life insurance council is going to meet by the month-end. We will ask all life insurers to give us an accurate feedback on illustrations,” T. K. Banerjee, member-Life, IRDA said.

Recently, all life insurance companies were directed by the watchdog to provide official illustrations to customers directly or through their intermediaries for all products. Insurance companies are required to give two views to their prospective policyholders on the rate of return on investment, indicating a higher and a lower rate.

IRDA has made it compulsory for the council to review “performance on illustrations at least once in April each year”. The initial rates to be used in projections are 6 per cent per annum and 10 per cent per annum.

This is the first time that the council (which has set the illustrations) will meet to review the usage of these rates. All life insurance companies have uniformly started selling policies with illustrations from April 1.

The regulator, however, had initially asked insurers to comply with illustrations from January this year. According to industry sources, it was Life Insurance Corporation which faced problems in compiling data and hence the delay.

Speaking about health insurance, Banerjee admitted that the third party administrators (TPAs) had performed badly when trying to act as facilitators among an insurer, policyholder and the hospitals. “They have neither been able to do much on building adequate data for health insurance nor have they been able to bring out standardisation in costs,” he said.

“Of the 24 licensed TPAs, seven are not doing any business. Of the remaining administrators, 15 are working both for public sector non-life and private insurers. But from all of them, only two to three TPAs are doing major business,” he said.