Page 10 - The Insurance Times June 2020

IRDAI sets up panel to March 25 in view of the Covid-19 pan- The letter suggested that the premium
demic and lockdown, which enabled for such a scheme be shared by the
draft standard indemnity registered medical practitioners to employer, employee, and government.

policy provide healthcare over the tele- "Insurance cover for retention re-
IRDAI has set up a panel to frame stan- phone. trenchment will add to social security
dard professional indemnity policy for "In the above background, insurers are available for employees through the
insurance intermediaries that can be advised to allow telemedicine wher- EPFO (Employee Provident Fund
issued by all the insurers. The develop- ever consultation with a medical prac- Organisation) and ESIC (Employees'
ment came after IRDAI witnessed sev- titioner is allowed in the terms and State Insurance Corporation)," the let-
eral instances where policies taken by conditions of the policy contract," ter said.
insurance intermediaries did not com- IRDAI said in a circular. "The reference has come from the
ply with the regulatory provisions. ministry to the GI Council, to check on
The provision to allow telemedicine
Professional indemnity policy offers should be a part of the claim settle- the feasibility on a cover against re-
trenchment. It will be discussed on the
protection to professionals against po- ment policy of the insurer and need not council level, and then sent to the
tential claims for injury or loss result- be filed separately with the authority
regulator for approval," said the CEO
ing from their advice action for failure for any modification, the regulator of a private non-life insurer.
to fulfil their duties. said.
It had recommended coverage of loss
Insurance intermediaries such as insur- However, the norms of sub-limits, of income, due to involuntary loss of
ance brokers, insurance web monthly and annual limits of the prod- employment, for a maximum of 6
aggregators, and corporate agent are uct would apply without any relax- months - with a limit of Rs 1 lakh per
required to take professional indem- ation. month or 60 per cent of the last four
nity insurance policies governed by dif-
This would mean that those who al- months' average income, whichever is
ferent regulations. ready have health cover that covers lower. The proposed product also in-
The insurance regulator said that consultation, and those who buy health cluded life cover of Rs 5 lakh and per-
while the existing regulations clearly insurance in future, can include sonal accident cover, covering perma-
stipulate the indemnity limit, cover- telemedicine expenses in their claims. nent total disability of Rs 5 lakh.
age, excess, and retroactive date, it
has come across a number of instances Finance Ministry seeks IRDAI allows short-term
where the policies taken by interme-
diaries did not comply with regulatory regulators view on re- Covid policies
provisions. trenchment cover IRDAI has allowed health and general
The panel has been asked to prepare The Central government has sought insurers to offer short-term health in-
surance policies of three months to 11
a standard professional indemnity suggestions from IRDAI and General months that will give coverage against
policy "which covers all the contingen- Insurance Council on the feasibility of the Covid-19 disease.
cies and conditions (retroactive date, an insurance cover for dealing with
indemnity limits, excess, etc) men- retrenchment, according to sources. "Short-term policies may be issued for
tioned in the Regulations" that can be This comes in the wake of a large num- a minimum term of three months to a
issued by all insurers. ber of individuals losing their jobs due maximum term of eleven months. In
between three months and eleven
to Covid.
IRDAI asks Insurers to in- In a recent letter to the Prime Minis- months, the policy term shall be in
multiples of completed months," it said
clude telemedicine in ter, Union Minister for Road, Trans- while issuing the guidelines. However,
port, and Highways Nitin Gadkari had a policy term less than three months
health policies
suggested the need for an insurance is not permitted. IRDAI asked the in-
IRDAI has asked insurers to allow product that gives subsistence salary surers to devise inclusive short-term
telemedicine consultation in the terms for a limited period of time in case of health insurance products "where
and conditions of the policy contract. job losses due to technological ad- waiting periods are part of the prod-
The Medical Council of India issued vancement, act of nature, or change uct, such waiting period shall not ex-
Telemedicine Practice Guidelines on in the economic structure. ceed 15 days". R

10 The Insurance Times, June 2020