Colour codes for health insurance plans
IRDAI is going to introduce colour codes for all individual health products that will enable the customers to understand the complexity of plans. According to an exposure draft released by IRDAI every health insurance product offered by general and health insurance companies will disclose on their websites colour codes. The firms will use green, orange, and red to depict the complexity of the products on offer. While green will signify that the product on offer is simple to understand, orange will mean it is moderately complex. Red will give out the impression that the product offered is complex. The regulator has sought comments by October 15. Every insurance advertisement shall also mention the colour code, said IRDAI. These guidelines are only applicable to individual health products, as the regulator is of the opinion that the group health insurance products are chosen by institutions considered as better informed entities. The IRDAI has set a number of parameters, based on which the products on offer will be given a score between 0 and 6. A product will be assigned “green” if it attains a score of 2 or less. Similarly, a product with an orange code means it has a score more than 2 but less than or equal to 4, while a product with a score greater than 4 and less than or equal to 6 will be assigned red.
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