Good news for individual health insurance policy holders : The insurance companies operating in the Indian market have hailed the IRDAI decision citing option to pay the premium on an installment basis was available only for life insurance companies. Bringing the installment mode to health might turn out as an incentive to the people to buy an insurance cover. The regulatory body has also given its nod to the insurers to add approved standalone riders or add-ons to approved individual health insurance products without having to file the product again. It also permitted insurers to change the sum insured made available to a policyholder if it is within the range filed for the original policy.

The Insurance Regulatory and Development Authority of India (IRDAI) has decided to give more freedom to the insurance companies. The insurance company regulatory body had given its nod to the insurers that allow them to increase or decrease the insurance premium by up to 15 per cent, subject to their claim experience in a particular sector. Therefore, in case an insurance company faces higher loss ratio or higher claim, it need not file permission to the IRDAI for increasing the insurance premium.

IRDAI has recently fined the web aggregator Policy bazaar for a huge sum of Rs. 1.11 crore. The case pertained to the year 2016 wherein many violations were observed by the regulator. It took more than 3 years for the regulator to pronounce the judgement. IRDAI should expedite the audit and observations as soon as possible so that companies many implement corrective measures.

A 12.99% growth has been reported by general insurance companies in their gross direct premium at Rs. 55,450.42 crore between April and July as against to the corresponding period a year ago. In July, their premiums recorded 22.73% growth against the corresponding month last year. According to market participants, despite strong growth in July, the motor insurance segment continues to witness a dip in premium largely due to a fall in car sales in India.

Among the 25 general insurers, New India Assurance, Bajaj Allianz General Insurance, SBI General Insurance and Tata AIG General Insurance companies only saw a positive growth in the April – July period, revealed the data from IRDAI.

Happy reading

Thanking you and assuring of our best and prompt services always.

Yours faithfully

For Link-K Insurance Broker Co. (Pvt.) Ltd

 V.P. Mohankumar