IRDAI for uniform standard health product

Insurance regulator IRDAI has asked all non-life insurers (general and health) to offer a “Standard Health Insurance Product” as it is essential for customers to have access to a basic health cover that caters to their needs.

“This standard product shall have the basic mandatory covers, which shall be uniform across the market. No additional add-ons or optional covers are allowed to be proposed to offer, along with the standard product,” the insurance regulator said.

Rakesh Jain, CEO, Reliance General Insurance, said, “This is something that unites every insurance company to at least get a customer on board with a simple product. The biggest struggle in this environment has been to get a person to buy a health product. The struggle in India has been to attract young people to buy health covers.”

The regulator has let non-life insurers determine the price of the product. However, they have to keep in view that the cover that has been proposed will have to comply with the norms specified under the IRDAI (Health Insurance) Regulations, 2016.

“The coverage will be the same but the pricing will vary. All the insurance companies will be pricing it on experience,” Jain added.