Among the 46 terms standardised by Irda
are quite a few that have been creating problems.
As per the IRDA
guidelines, in case of a switch the old health insurance company will have to share the details of the policy within seven days.
Specifiying on the cost structure, IRDA
said that the maximum expense, including commission, should not be more than 27.5% of the premium, while for the second and the third year, this will be capped at 7.5%.
rules specify that no group insurance contract will be allowed for these products at this stage.
This is because Irda
has now clearly defined medical expenses as "expenses that an insured has incurred for medical treatment on account of illness or accident on the advice of a medical practitioner, as long as these are no more than would have been payable if the insured had not been insured and no more than what other hospitals/doctors in the same locality would have charged."
According to market analysts, the lobbying by these companies is one of the reasons for the delay in IRDA
not being able to roll out the guidelines for public offerings.
In order to reduce ambiguity, bring order in the industry and enable easy comparison of policies, Irda
has issued an exposure draft on health insurance.
's move follows complaints on the sale practices of the insurers regarding ULPs.
In an industry forum, Irda
chairman J Hari Narayan said the table has been finalised and indicated that premiums may come down as life expectancy has gone up for most of the categories.
ON THE first day of the norms unveiled by the Insurance Regulatory and Development Authority ( IRDA
) coming into effect, IDBI Mutual Fund announced the launch of its second index fund -- the IDBI Nifty Junior Index Fund, and SBI Life launched two unit- linked insurance plans ( Ulips).