Page 34 - The Insurance Times October 2021

to Covid. Both these plans are short-term plans that have allied perils -- Bharat Griha Raksha, Bharat Sookshma Udyam
standard coverage features. Like Arogya Sanjeevani, the Suraksha, and Bharat Laghu Udyam Suraksha. The purpose
premium for these policies differs across insurers. To ensure behind bringing in such standard products is to increase the
that policyholders understand the technical nature of their protection quotient in each segment.
health insurance plans easily, IRDAI standardized various
clauses. The concept of pre-existing illnesses, policy India is a hugely under-insured country, where only 19 per
exclusions and proportionate deductible in room rent was cent of lives are insured. In the case of vehicles, although
simplified. third-party insurance is mandatory, only 79 per cent of four-
wheelers are covered and 66 per cent of four-wheelers are
An indisputability clause was added which limited the power insured for own-damage only. For two-wheelers, it is much
of insurers to reject claims after 8 years of coverage. worse, as only 36 per cent of vehicles are insured under the
Moreover, the health insurance policy was made more third party and 39 per cent are covered for their own
comprehensive by the inclusion of mental illnesses and damage. Motor industry is facing severe slowdown due to
modern treatments under the purview of the plan. These supply chain disruptions, stalled production and low demand.
changes have made health insurance plans more customer-
friendly which have also driven up the demand of these In April 2020, automobile manufacturers registered zero
plans. sales due to the lockdown. Sales have picked up marginally
in May onward after the lockdown restrictions were eased
by the government; but are well below the pre-COVID levels.
Despite difficult economic conditions, the insurance industry
has been resilient to the extent that we have positive
growth above 5 per cent as of now.

The insurance industry has been able to respond to
unforeseen risks and it has come out with new products and
new features in the existing products. Also, the claim
settlement has been fast. The Regulator has come up with
a regulatory sandbox to allow the insurance companies to
experiment, bring out innovative products, and innovative
services.

Non-life Insurance
products

For some time now, the IRDAI has
been coming out with various
standard products, both in the life
and general insurance space. So
far, the Regulator has launched a
standard health product named
"Arogya Sanjeevani", two Covid-19
specific standard products --
Corona Kavach and Corona
Rakshak, a standard term product
named "Saral Jeevan Bima", a standard vector-borne disease
health policy, a standard annuity product "Saral Pension", a Not against innovation
standard personal accident cover "Saral Suraksha Bima", and The passage of the General Insurance Bill has drawn
three standard products for covering the risk of fire and criticism for the absence of discussion and debate in

34 The Insurance Times, October 2021