IRDAI may allow life insurance companies to sell indemnity health policies. Simply put, just like health insurance policies of general insurers and standalone health insurers, life insurance companies can offer health policies, which would pay reinstatement value on hospitalization.
Currently, most life insurance companies offer fixed benefit policies like critical illness cover, which pays certain amount for a particular disease on claim settlement. For instance, if a policyholder contracts cancer, the insurance company would pay the pre-defined sum insured.
The 9-member-committee headed by G Srinivasan, Director, National Insurance Academy will submit its reports within two months.
The committee will review feasibility and business scope for life insurance to offer indemnity based health insurance products, statutory provisions that are applicable and so on.