Page 9 - Insurance Times Janaury 2021

The cover for death and permanent The permission to increase premium deepen the penetration of travel insur-
total disablement will be mandatory, was done as a one-time measure for ance, which shall provide a safety net
but insurers can offer optional covers seamless transition of existing products to every individual who is travelling, it
along with the base plan, which will to ensure viability and sustainability. is considered essential to have a stan-
provide coverage for temporary total "As on 30 September 2020, out of 388 dard travel product, said the draft
disablement and education grant for products, premiums were increased by guidelines issued by the IRDAI.
dependent children. general and health insurers up to 5%
Key features of the policy are:
of the then prevailing rates only in case
The optional cover will also pay out up There shall be no restrictions on the
to 10% of the base sum insured for of 55 products," IRDAI said in a age of entry. However, the proposer
circular.
hospitalization for a minimum of 24 shall be of a minimum of age 18 years,
hours as the result of an accident. The clarification comes primarily in the as per the draft guidelines. The
wake of policyholders blaming proposer is the person who takes the
The minimum and maximum entry
age has been kept at 18 years and 70 regulatory changes for the rise in insurance cover, he/she is also called
years, respectively. The policyholder premiums in this financial year. the policyholder.
can pay premiums yearly, half-yearly, Moreover, the regulator said it had There are five variants under domestic
quarterly, or monthly. cleared revision in premium beyond 5% travel - 1. Travel by any mode of public
Insurance companies will have of only five health insurance products transport (within city), 2. Travel by any
freedom on the pricing front. of general or health insurers during the mode of public transport (outside city),
year up to 30 November as part of 3. Train Journey, 4. Air-travel and 5.
According to experts, standardization
periodical modification of their Domestic tours involving road, water,
of insurance products ensures the respective products, based on the
availability of specific-purpose plans train and air travel) and four under
incurred claims experience. overseas travel (1. Long-term trip
and enables insurers to innovate on
(students), 2. Short-term trip (tours/
product design to differentiate and
provide more options to policyholders. IRDAI proposes standard leisure) (covers travel through road,
travel insurance policy by water, train and air), 3. Multi-trip
IRDAI clarifies about April 1 during a policy period (business), and
4. Coverage only for travel (onward
premium increase in IRDAI has proposed a standard travel and return)
health insurance insurance policy with common The nomenclature of the product shall
coverage and policy wordings across be Standard Travel Insurance Policy,
IRDAI has clarified that it has
the industry. The move is aimed at succeeded by the name of the
permitted general and health insurers
increasing penetration of the product. insurance company.
to change the base premium by up to
+/-5% of originally approved premium "The standard product shall have the The standard product shall also be
rates in order to comply with the basic mandatory covers as specified in offered on a family floater basis. When
guidelines on standardization of draft guidelines which shall be uniform you buy travel insurance for the entire
exclusions. across the market. The product may be family, it is known as a family floater.
both as an individual product and as a It provides insurance covers for the
IRDAI had last year broadened the
group product," said the draft entire family for the sum assured
scope of coverage to include conditions
guidelines issued on 28 December, during the course of travel and only
such as mental illnesses and HIV-AIDS.
2020, by the IRDAI. one premium is paid for such a travel
The regulator has also been
standardizing the products and has Though there are a number of travel policy.
reduced the list of non-payable items insurance products available in India, The policy tenure of the standard product
also called exclusions such as the penetration of travel insurance is shall be the duration of the journey of
chemotherapy and robotics yet to take off. Further, each product the policyholder as a fare-paying
treatment, among others. Items under has unique features and the insuring passenger and during their stay
exclusions are not reimbursed by the public may find it difficult to choose an overseas, in case of the overseas travel
insurer. appropriate product. In order to policy, as specified in the policy schedule.
The Insurance Times, January 2021 9