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Your life insurer may soon be able to offer a health insurance policy too

insurance policy –

According to a report in Mint, the Regulatory Development Authority of India (Irdai) may soon allow life companies to offer health policies. The move, if and when implemented, is likely to reduce premiums of policies and boost access to affordable health cover.

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According to the report, the internal committee of has been discussing the proposal for a few weeks now. The draft guidelines to allow life insurers to sell indemnity products will be released in some time.

The numbers around penetration in India are less than encouraging. Economic Survey 2021-22 revealed that penetration in India was at 3.2 per cent in 2020, rising from 2.82 per cent in 2019. The penetration of non- (health, motor, fire, and industrial insurance) is in a far worse position at 1 per cent. The global average is 4.1 per cent, reported Mint.

Also Read: More flexibility for insurers as Irdai eases health product approvals

According to the report, may allow life insurers to either sell existing policies of other companies or will enable them to both design and distribute mediclaim policies.

Currently, a basic policy with a sum insured of Rs 2 lakh carries a premium of Rs 5,000-7,000 per annum for an adult without any pre-existing diseases, aged 18-50. It is speculated that health range may get lowered by 5-10 per cent if allows life insurers to design and sell medical insurance.

Health insurance accounts for 33 per cent of the total non-life industry premiums. In FY22, the health insurance premiums totalled Rs 73,578 crore.

Earlier in 2016, Irdai barred life insurance companies from selling indemnity health insurance policies.

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