Relevance: Prelims: Economy: Current Affairs
Why in news?
- The Insurance Regulatory and Development Authority of India (IRDAI) has set up a nine-member committee under Chairmanship of G Srinivasan (former CMD of New India Assurance) to study the feasibility of allowing life insurers to offer indemnity-based health policies.
Key highlights:
- In an indemnity-based health insurance plan, the policyholder is reimbursed the cost of medical expenses. These plans will reimburse the policyholder with the actual amount incurred as expenses during a hospitalisation stay up to the sum insured under the policy.
- As of now, only general insurance firms and specialised health insurance companies are allowed to offer indemnity-based health policies.
- IRDAI (Health Insurance) Regulations 2016 allow life insurance companies to offer benefit based health insurance products only.
• The IRDAI move follows intense lobbying by private life insurance companies for an entry into the fast-growing health
insurance segment.
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