SEBI introduces TROP plans and defines expert advisory roles

SEBI introduced Term Plans with Return of Premiums (TROP) plans, which provide life insurance protection during the policy term. If the policyholder survives until maturity, the insurer returns the premiums paid, subject to the policy’s terms and conditions. The regulatory action also defined the advisory role of registered experts regarding these plans.

The introduction of TROP plans addresses the perception that pure protection plans offer no benefit if the policyholder survives the term. This regulatory change is part of SEBI’s broader efforts to enhance investor protection while easing business operations within the Indian financial markets.

SEBI approved amendments to regulations aimed at easing business operations and enhancing investor protection in the Indian financial markets.