Soon life insurers may be allowed to offer indemnity-based health policies also. A committee has been set up by the Insurance Regulatory and Development Authority of India (IRDAI) to study the feasibility of allowing life insurers to offer indemnity-based health insurance
policies. Currently, IRDAI (Health Insurance) Regulations 2016 allow life insurers to offer defined benefit-based health insurance products only.
Indemnity-based health plans are basically those insurance policies where the insured is reimbursed the actual expense incurred during hospitalisation up to the total sum insured under the policy.
According to a IRDAI press release, issued on February 25, 2020, “Insurance Act, 1938 vide Insurance Laws (Amendment) Act 2015 recognised Health Insurance as a separate class of business. Historically Health insurance is recognized as one of the important elements of health care and health insurance premiums have been registering a significant CAGR of around 20% in the…
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