Money & Banking

Now, you can pay medical insurance premium monthly, quarterly or half-yearly

Surabhi Mumbai | Updated on September 25, 2019 Published on September 24, 2019

IRDAI suggests minor modifications in policies filed by general and standalone health insurers.

You will soon have the option of paying your health insurance premium in not just annual, but monthly and quarterly instalments as well.

The insurance regulator IRDAI has now come out with a circular for minor modifications in policies filed by general and standalone health insurers.

According to the norms, the premium mode can be monthly, quarterly or half-yearly provided there is no change in the premium structure or charge.

Industry players said the norms also allow addition of more critical illnesses to the cover, as well as increasing the maximum age limit from 65 years, with permission from the regulator.

Rashmi Nandargi, Head – Retail Health, Travel and PA Underwriting, Bajaj Allianz General Insurance said, "The recent guidelines shared by IRDAI on minor modifications in approved Individual Insurance Products offered by general and standalone health insurers on certification basis, will definitely help in increasing the penetration and distribution of insurance products."

Greater flexibility

G Naga Sridhar reports from Hyderabad: The IRDAI has given more flexibility to health insurers on the products being offered and filing norms.

Health insurers are now permitted to change the base premium rates not exceeding plus or minus 15 per cent of the rates originally approved in an individual product. They can also add critical illnesses covered under benefit-based products, besides approved standalone riders or add-ons to the approved individual health insurance products. The policy words can also be changed to a minor extent.

"The proposed modifications should not impact the benefit structure of the product, including the manner of settlement of the underlying benefits,’’ the authority said in a circular. The changed guidelines will come into effect immediately.

Asked about the nature of modifications allowed and their impact, Nandargi of Bajaj Allianz General Insurance said: "The regulator has allowed insurers with previous experience to make changes in the product, to help benefit the consumers. These guidelines have also made the implementing process faster for the insurer. compared to the earlier longer filing process."


Published on September 24, 2019
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