Page 10 - Insurance Times October 2023

Need specialised insurance products for disabled in- "The reduction in the capital require-
ment from the overseas reinsurers will
dividuals, says IRDAI definitely increase the number of

There is a need to design special insurance products for disabled citizens to reinsurers present in India, which was
bring India at par with developed countries and global insurance module stan- a long-standing demand from the indus-
dards, as well as creating mechanisms for addressing concerns and grievances. try," said Salil Das, Director of Reinsur-
ance at Alliance Insurance Brokers.
"Challenges are diverse and so are the solutions. While India is in its early
stages of insurance development compared to developed countries, we're "Because they are shielded from the
committed to ensuring improvements and enhancing the insurance landscape," central office, they must invest more
said Pankaj Tewari, General Manager, IRDAI. funds as a branch office. As a result, they
must raise finance, which is now re-
The comments were part of discussions between insurance companies and
stakeholders to make health insurance products for disabled people. The meet stricted. Reinsurers will be more preva-
lent; if there are more reinsurers in the
was organised by National Centre for Promotion of Employment for Disabled
People (NCPEDP), National Human Rights Commission (NHRC) in collaboration market, the market will grow and rein-
with disability rights groups and IRDAI. surance capacity will increase, allow-
ing insurance companies to rise and dis-
Discussions entailed challenges in access to insurance, affordability, compre- pose of surplus more easily, whereas
hensive access to assistive products. In addition, participants highlighted se- they currently reach out to the inter-
vere gaps in health insurance coverage for disabled people, which include national market," Das explained.
denial of coverage, inconsistent testing requirements, and limited coverage
for specific needs. During its 123rd Authority meeting, the
insurance regulator sanctioned a series
Following the Delhi High Court's directive in December 2022, IRDAI had in
of amendments to the Reinsurance
February 2023 mandated insurers to offer annual health coverage to PWDs
Regulations to harmonise and stream-
(persons with disabilities), HIV-positive, and mentally disabled individuals. The line the existing regulations applicable
regulator had asked all insurance companies to devise inclusive insurance prod-
to Indian insurers, Indian reinsurers,
ucts aligned with their specific requirements. Foreign Reinsurance Branches (FRBs),
and International Financial Services
may invite external members to revivals and policy loans, if any is per- Centre Insurance Offices (IIOs).
examine specific issues or suggestions. mitted. Policyholders can choose how
often they receive certain benefits from IRDAI plans committee to
IRDAI enables additional their policies with income benefit pay-
ments. create Bima Sugam plat-
options for withdrawn life
"With this initiative, IRDAI reaffirms its form, to appoint project
cover products
dedication to policyholders by offering consultant
IRDAI introduced new measures allow- greater flexibility and enhancing poli-
ing more choices and benefits for poli- cyholders' insurance experiences,'' the IRDAI has formed a steering commit-
cyholders with withdrawn life insurance insurance regulator said. tee, which will act as the apex decision
products. making body for creation of its ambi-
tious Bima Sugam platform, and it indi-
Effective immediately, the new rules IRDAI lowers minimum cated that it will soon appoint a project
apply to products which are no longer consultant for which Request for Pro-
available for sale but still have existing capital need for foreign posal (RFP) has already been issued.
policies serviced by insurers. reinsurers to Rs. 50 crore
While Bima Sugam will enable individu-
As per the new provisions, insurance IRDAI has chosen to lower the mini- als to buy a life, health, motor or prop-
companies can offer new riders to the mum capital requirement for Foreign erty insurance policies online, its imple-
existing policyholders of withdrawn Reinsurance Business (FRBs) to Rs 50 mentation has now been postponed
products. As part of flexible payments, crore from Rs 100 crore. This amend- thrice. The platform will enable easy
the option to change the premium pay- ment is among other revisions in the access under a single roof for insurance
ing mode can also be provided. reinsurance segment aimed at position- companies, agents, brokers, banks and
A reduction in interest rates for policy ing India as a global insurance hub. even aggregators.

10 October 2023 The Insurance Times