Page 8 - Insurance Times March 2021

IRDAI

News

IRDAI seeks insurers' Alternatively, if an insurance policy offers of motor insurance business through
out-patient department benefits, it will MISP channel.
views on coverage of
cover the cost of the jab. Among other issues, the panel
Covid vaccine cost However, health policies that come examined the current practice of

IRDAI has sought health and general with an OPD cover are generally quite collecting the premium payment from
insurers' views on covering the cost of expensive and experts said this is one the customer while soliciting the
COVID-19 vaccination under their reason the category hasn't picked up motor insurance policy. Under the
existing plans, a health insurance in the past. The move will also pose present system, it said there is a lack
executive said, adding that the operational issues. of transparency in the cost of insurance
industry body General Insurance premium when the customer buys the
Council has opposed the move. IRDAI panel recommends vehicle for the first time through the
automotive dealer and makes the
According to the executive, who separate payments for payment through one single cheque.
confirmed receiving IRDAI's
communication in the first week of cost of vehicle and motor As the MISP makes payment to the
January, the move may lead to abuse insurance premium insurance company from his own
account, "the customer does not know
and misuse of insurance policies, IRDAI had issued MISP guidelines in the insurance premium being paid as
besides putting a heavy monetary 2017 with the intention of streamlining it is subsumed in the cost of the
burden on insurance companies. the process and bringing the practices vehicle", the committee said.
"The regulator's query was also of vehicle insurance, being sold by It suggested that this lack of
centered on whether covid-19 vaccines automotive dealers under the transparency is not in the interest of
are covered and how they are covered provisions of the Insurance Act, 1938.
the policyholders' interest as the true
under health plans. There isn't any Motor Insurance Service Provider cost of insurance is not known to the
advisory on this front from the (MISP) refers to an automobile dealer customer. "The customer may not be
regulator as of now," the executive appointed by the insurer or the aware of the coverage options and
said, seeking anonymity. insurance intermediary to distribute discounts available in the process. The
As health insurance policies are and/ or service motor insurance policies customer also cannot negotiate with
indemnity-based plans (where of automotive vehicles sold through it. the MISP to get the best coverage at
hospitalization expenses are In June 2019, the regulator had set up the optimal price."
reimbursed), a person who is a committee to review the MISP The committee recommended that
hospitalized for at least 24 hours and guidelines. The panel has submitted the customer should make payment to
is given a COVID-19 vaccine can claim report in which it has made various the insurance company directly which
expenses. recommendations for orderly conduct is facilitated by the MISP. "MISP shall

8 The Insurance Times, March 2021