The Insurance Regulatory and Development Authority of India (IRDAI) has given flexibility to insurers to empanel network providers in health cover.

In a circular sent to insurance firms and third-party administrators, the insurance regulator said that “The insurers are now empowered to empanel the network providers that meet the standards and benchmarks criteria as specified by their respective boards.’‘  

The objective is to enhance the scope for offering cashless facilities across the country, according to the authority. 

“While specifying the criteria, the board of insurers shall, consider the minimum manpower and healthcare infrastructure facilities,” it said.

The board-approved empanelment criteria should be published on the websites of the insurers from time to time.

“While empanelling network providers for cashless facilities, insurers are also advised to focus on the delivery of quality healthcare services,” the IRDAI said. These instructions have come into force with immediate effect.

Industry welcomes move

The move has been welcomed by the industry. “This announcement by the IRDAI is a significant development that liberates the health insurance providers to broaden their spectrum of healthcare network,” Sanjay Datta, Chief, Underwriting, Claims & Reinsurance, ICICI Lombard, told BusinessLine. 

Datta said it would also enable the dual benefit of deeper insurance penetration while encouraging seamlessness in customer experience. 

“The steps taken by the apex body are growth-oriented and directed towards ensuring optimum outreach, which shall consequently aid the further development of our industry,” he added.