Life Insurance companies may be allowed to sell indemnity based health insurance policies soon. With a view to examine the feasibility, the Insurance Regulatory and Development Authority of India (IRDAI) has constituted a committee.
The committee, headed by G Srinivasan, Director, National Insurance Academy, will have M R Kumar, Chairman of LIC as co-chair besides besides seven other members. It has been asked to submit its report in two months.
According to Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance Company Ltd, allowing life insurers to sell indemnity products will help provide a host of benefits to customers.
“Given the low penetration of health insurance in the country, selling the value-packed products through life insurer’s strong distribution network - agents/partners/online - will help take the benefits of health insurance to many more customers.’’ he said.
It will also enable them to take care of the expenses arising from critical illness or hospitalisation, he added.