Page 24 - Insurance Times May 2020

RECENT

DEVELOPMENTS

MANDATED BY IRDAI

IN THE HEALTH

INSURANCE SECTOR-

AN ANALYSIS

T here has recently been an array of new ideas and I) Arogya Sanjeevani

customer-friendly moves mandated by the
Following a circular in January of this year IRDAI declared
Insurance Regulatory Development Authority of
that there must be a singular and standardised Health
India (IRDAI) in the Health Insurance sector. This
has opened up new and welcome options for insurance policy to be offered by all insurers, the public
domain is now abuzz with the possible changes round the
customers. Different service-providers have also contributed corner in this sector. All general and stand-alone health
by opening up the field to innovative thinking and are offering insurers across the board are to offer a single policy with
products geared to fill in the gaps in the standard bouquet identical sum insured, terms, conditions and exclusions, not
of health products available earlier. This field is now dynamic later than 1st April 2020. However, this circular was later
and rapidly-evolving, with many pleasant surprises awaiting modified and it was mentioned that this deadline would be
customers at a time the Government is laying stress on relaxed for those insurers not offering indemnity-based
universal health coverage. health policies at this point of time.

Some significant changes brought in by As and when these insurers start offering indemnity-based
IRDAI health insurance products, they would also have to offer this
standard product. This new product would be referred to
as "Arogya Sanjeevani" followed by the name of the insurer.
The product would be a plain-vanilla product and would be
About the author convenient for customers as they would be spared from
comparing multiple terms and conditions and add-ons
Nandita Banerjee
presently offered by different insurers, which usually is quite
Formerly Manager, confusing for ordinary customers. The new scheme would
National Insurance Company Limited.
also allow seamless portability between insurers.

24 The Insurance Times, May 2020