India’s Life Insurance Council will ask the Insurance Regulatory and Development Authority of India (IRDAI) to reinstate its right to sell indemnity health cover.
These products allow policyholders to claim back money after visiting a doctor.
Currently, life cos can only offer fixed-benefit health products. It is not clear why they were banned from offering indemnity.
The council formed a committee led by Vibha Padalkar, chief executive and managing director of HDFC Life, to deal with the issue.
Padalkar said that, by the end of March 2019, the committee is looking to submit a proposal to the IRDAI asking it to reinstate the offering of indemnity health products to life businesses, reports local newspaper The Times of India.
When the regulator introduced the ban in 2016, indemnity-based health products accounted for 90% of the health insurance market in India.
International Adviser reached out to the Life Insurance Council, but did not receive a comment.
