IRDAI to Announce Major Reforms in Health Insurance Sector

The council is also working to extend the reach of insurance in underserved areas, with a particular emphasis on closing the protection gap and improving insurance access through rural and social targets for insurers.

The Insurance Regulatory and Development Authority of India (IRDAI) has announced its plans for major reforms in the health insurance sector, aiming to make insurance more accessible and consumer-friendly.

The regulatory body that oversees the insurance industry in India is set to introduce reforms to make health insurance more accessible to the public and to enhance the consumer experience.

However, specific details of the proposed reforms are yet to be disclosed.

Probable Key Component

In a recent press note, the General Insurance Council (GI Council), a key intermediary between IRDAI and the non-life insurance industry, has expressed its commitment to making health insurance a vital component of financial security for individuals and families across India.

The council is leading several initiatives aimed at increasing the accessibility of health insurance. These include the development of tailored products for senior citizens, simplification of policy language, expansion of cashless facilities, and collaboration with hospitals and other stakeholders.

Further, the council is also working to extend the reach of insurance in underserved areas, with a particular emphasis on closing the protection gap and improving insurance access through rural and social targets for insurers.

The regulator aims to make insurance available to all sections of society and in every corner of the country through the Bima trinity of Bima Vistaar, Bima Vaahaks, and Bima Sugam.

IRDAI’S Bima Vistaar

Bima Vistaar is a comprehensive insurance product designed by the IRDAI to cater to the insurance needs of rural communities. It will offer a combination of life, health, personal accident, and property insurance in a single policy.

Reportedly, Bima Vistaar is set to be rolled out in the first quarter of the next financial year.

The sum assured for life, personal accident, and property covers is INR 2 Lakh each, while the health cover offers a sum assured of INR 500 for 10 days, with a maximum amount of INR 5,000 available without producing bills or documents.

IRDAI’s initiative encourages more people to invest in insurance for their protection along with promoting financial inclusion.

The launch of Bima Vistaar is part of IRDAI’s broader goal of making insurance more accessible and affordable for all sections of society.

Despite a major thrust on deepening insurance penetration, it remains low in India. IRDAI is banking on Bima Vistaar to help further its goal of ‘Insurance for All’ by 2047.

Tapan Singhel, chairman, General Insurance Council, said “Our collective efforts are focused on making health insurance a key enabler of not just our citizens' health but societal health at large. We aim to make quality treatment accessible to everybody, irrespective of where they are from, and ensure we can take away their worries so that they can live a life of dignity.’’

According to this survey report, a significant 93% of the participants voiced the need for regulatory changes to address the prevalent issues in the health insurance sector.

IRDAI acknowledged that one of the barriers to the spread of insurance across India is the lack of awareness about health insurance. To address this, they have implemented initiatives such as Bima Bemisaal to raise awareness about the importance of having a health insurance plan.

Recently the IRDAI omitted the age restriction on health insurance for individuals who are 65 years old and above. This move is aimed at enabling access for older individuals and enhancing coverage for high-risk health conditions.