IRDA norms for standalone health cos soon

CHENNAI: The Insurance Regulatory and Development Authority (Irda) said that it would develop a separate regulation for health insurance in six months. The health insurance segment, earlier considered a loss-making portfolio is now garnering more attention, thanks to de-tariffing and more players getting into this segment.

Irda chairman CS Rao told reporters on Monday that the regulation would apply only to standalone health insurers and not general insurance companies offering health insurance. Currently, there are two standalone health insurance companies in India — Star Health and Allied Insurance and the recently — launched Apollo DKV Insurance.

Mr Rao was in Chennai to attend the fourth annual conference of the Insurance Brokers Association of India (IBAI). The association also launched a website that catered exclusively to health insurance products.

Representatives of the association said that they were concerned about claims management and consultancy services which they were not allowed to perform as Irda members. They sought to reduce the training period for brokers from 100 hours to 50 hours to prevent excess expenditure.

Irda had constituted an expert committee, the GK Raman committee, to review the regulations governing the licensing of brokers. Irda is still reviewing the committee reports and has not set a time-frame to give its recommendations.

“The role of brokers is something that has been talked about in the last three years. Through value addition, there are plenty of opportunities to participate in this market. Brokers should see that the growth is along the scientific lines to support the development of the insurance industry,” CS Rao added.