IRDAI to study health products for life insurers

The Insurance Regulatory Development Authority of India has decided to set up a committee to examine the feasibility of allowing life insurers offering indemnity-based health policies. “Historically Health insurance is recognised as one of the important elements of healthcare and health insurance premiums have been registering a significant CAGR of around 20 percent in the preceding 10 years in India. IRDAI (Health Insurance) Regulations 2016 allows Life Insurance Companies to offer Benefit based health insurance products only. Representations have been received from Life Insurance Companies to allow them to offer indemnity products as well,” a statement read.

The regulator has selected G. Srinivasan, director of National Insurance Academy as chairperson, M.R. Kumar, chairman of LIC of India as co-chair, M.N. Sarma, secretary general of GI Council, S.N. Bhattacharya, secretary general of LI Council, A. V. Girija Kumar, CMD of Oriental Insurance Co. Limited, Vibha Padalkar, MD & CEO of HDFC Life Insurance Co. Ltd, Ritesh Kumar, MD & CEO of HDFC Ergo General Insurance Co. Limited and Dr. S. Prakash, MD of Star Health and Allied Insurance Company as members as well as Jayashree Sridhar, faculty member of the National Insurance Academy as convenor of the committee.

The group will review aspects such as feasibility and business scope for life insurance companies to offer indemnity based health insurance products, extant statutory provisions that are applicable in this regard, and any other matter as permitted by the chairperson. The committee will meet as often as required and submit its recommendations within two months of issue of the order.