Page 89 - Life Insurance Today January-June 2020

IRDAI sets up panel to Telemedicine Practice Guidelines on The letter suggested that the pre-
March 25 in view of the Covid-19 pan- mium for such a scheme be shared by
draft standard indemnity demic and lockdown, which enabled the employer, employee, and govern-
policy registered medical practitioners to ment. "Insurance cover for retention

IRDAI has set up a panel to frame provide healthcare over the tele- retrenchment will add to social secu-
phone. rity available for employees through
standard professional indemnity policy
the EPFO (Employee Provident Fund
for insurance intermediaries that can "In the above background, insurers
be issued by all the insurers. The de- are advised to allow telemedicine Organisation) and ESIC (Employees'
velopment came after IRDAI wit- wherever consultation with a medical State Insurance Corporation)," the let-
nessed several instances where policies practitioner is allowed in the terms ter said.
taken by insurance intermediaries did and conditions of the policy contract," "The reference has come from the
not comply with the regulatory provi- IRDAI said in a circular. ministry to the GI Council, to check on
sions. the feasibility on a cover against re-
The provision to allow telemedicine trenchment. It will be discussed on the
Professional indemnity policy offers should be a part of the claim settle- council level, and then sent to the
protection to professionals against po- ment policy of the insurer and need not
regulator for approval," said the CEO
tential claims for injury or loss result- be filed separately with the authority
of a private non-life insurer.
ing from their advice action for failure for any modification, the regulator
to fulfil their duties. said. It had recommended coverage of loss
of income, due to involuntary loss of
Insurance intermediaries such as insur- However, the norms of sub-limits,
employment, for a maximum of 6
ance brokers, insurance web monthly and annual limits of the prod- months - with a limit of Rs 1 lakh per
aggregators, and corporate agent are uct would apply without any relax- month or 60 per cent of the last four
required to take professional indem- ation. months' average income, whichever is
nity insurance policies governed by dif- This would mean that those who al- lower. The proposed product also in-
ferent regulations. ready have health cover that covers cluded life cover of Rs 5 lakh and per-
The insurance regulator said that consultation, and those who buy sonal accident cover, covering perma-
while the existing regulations clearly health insurance in future, can include nent total disability of Rs 5 lakh.
stipulate the indemnity limit, cover- telemedicine expenses in their claims.
age, excess, and retroactive date, it IRDAI allows short-term
has come across a number of instances Finance Ministry seeks Covid policies
where the policies taken by interme-
diaries did not comply with regulatory regulators view on re- IRDAI has allowed health and general
provisions. trenchment cover insurers to offer short-term health in-

The panel has been asked to prepare The Central government has sought sug- surance policies of three months to 11
months that will give coverage against
a standard professional indemnity gestions from IRDAI and General Insur- the Covid-19 disease.
policy "which covers all the contingen- ance Council on the feasibility of an in-
cies and conditions (retroactive date, surance cover for dealing with retrench- "Short-term policies may be issued for
indemnity limits, excess, etc) men- ment, according to sources. This comes a minimum term of three months to a
tioned in the Regulations" that can be in the wake of a large number of indi- maximum term of eleven months. In
issued by all insurers. viduals losing their jobs due to Covid. between three months and eleven
months, the policy term shall be in
In a recent letter to the Prime Minis- multiples of completed months," it
IRDAI asks Insurers to in- ter, Union Minister for Road, Trans- said while issuing the guidelines. How-
clude telemedicine in port, and Highways Nitin Gadkari had ever, a policy term less than three
health policies suggested the need for an insurance months is not permitted. IRDAI asked
product that gives subsistence salary the insurers to devise inclusive short-
IRDAI has asked insurers to allow for a limited period of time in case of term health insurance products
telemedicine consultation in the terms job losses due to technological ad- "where waiting periods are part of the
and conditions of the policy contract. vancement, act of nature, or change product, such waiting period shall not
The Medical Council of India issued in the economic structure. exceed 15 days". R

Life Insurance Today January - June 2020 89