Life insurance companies set to offer health insurance policies again

Mumbai, Aug 28 (PTI) LIC and other major life insurers are seeking to re-enter the indemnity-based health insurance industry amid clear indications from insurance regulator IRDAI to re-approve life insurers in the health insurance segment. .

Besides Life Insurance Corporation of India (LIC), insurers like ICICI Prudential Life, HDFC Life and Bajaj Allianz Life say they also offered mediclaim policies before the ban in 2016. But the Insurance Regulatory and Development Authority of India ( IRDAI) stopped him. to do.

These insurers say they are all set to get back into business when the insurance regulator gives them the nod to sell mediclaim policies again. All of these companies also currently offer non-compensatory health policies.

Indemnity-based health plans, i.e. mediclaim policies, are renewed every year or are sold with a validity of one year. These are the best-selling health plans in the country. However, in 2016 the insurance regulator banned life insurers from selling such plans. Since then, life insurers have been allowed to offer only defined benefit health plans.

When contacted, LIC said: ‘We are reviewing the proposal received from the regulator as health is our core life insurance business. This is not new because we have been active there for decades and also offer many products without compensation.

LIC President, MT Kumar, told PTI, “We already offer many products for long-term health protection and guaranteed health. We are evaluating the suggestions given by the regulator.

IRDAI chief Debashish Panda had recently said that the time had come for life insurance companies to re-enter the healthcare sector. This is necessary to achieve the goal of having a health policy for every citizen by 2030. However, later Panda said that no decision has yet been made in this regard.

Private sector company ICICI Prudential Life today said it had a large customer base of 2.63 lakh in the healthcare sector despite regulatory restrictions allowing most customers to move (change companies while continuing the policy).

NS Kannan, managing director of ICICI Prudential, said: “We want to re-enter health insurance because there is nothing new about it. We had been in this segment for many years before the sudden ban in 2016. It fits perfectly with the life insurance business.

Another life insurance company, Bajaj Allianz Life, also said it would refocus on the sector. Tarun Chugh, MD and CEO, Bajaj Allianz Life said, “We want to understand where this proposal will go. As a company, we are well positioned to meet the health insurance needs of our customers.


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