IRDAI To Seek Councils’ View On Life Insurers’ Plea To Offer Indemnity Plans
The Insurance Regulatory and Development Authority of India will seek views of the life and general insurance councils before deciding on the appeal of life insurers to offer indemnity- based health plans, an official said on Wednesday.
The life insurers have sought permission from the regulator to launch indemnity or reimbursement based health cover products and the insurance regulator will take a call soon on the matter, the official said.
"We will be writing to Life Insurance Council and General Insurance Council in a week or so to seek their views on the matter. We will examine their recommendations and take a call soon," IRDAI Member (Life) K Ganesh said on the sidelines of a programme organised by Merchants' Chamber of Commerce & Industry in Kolkata.
Non-life companies feel that allowing life insurers to offer indemnity-based plans will increase competition further in the market, he said adding that this issue will be kept in mind while making a decision.
A person can avail indemnity-based health plans from non-life insurers.
He said there were 930 odd life insurance products and insurers have been in the process of revising their products according to the guidelines of the regulator.
"Some of their products will undergo change and there would not be any change required for some products. Life insurers have so far filed more than 150 products with modifications to the authority," Ganesh said.
The insurers were given time up to Jan. 31, 2020 to complete the process of revision of their products, he said.