The Insurance Regulatory and Development Authority of India (IRDAI) has produced a set of guidelines for a Standard Health Product which will be offered by all insurance companies mandatorily. The guidelines are currently in the drafting stage and need to be finalised by the regulator. Once the rules have been finalised, all insurance companies in the general and health insurance business will be required to offer the product.
The Standard Health Product will be an indemnity plan that offers reimbursement of the expenses incurred, subject to the sum insured limit. Insurers will not be permitted to offer any add-on or optional covers with the base plan. Further, the deductible clause cannot be added to the policy but a standard 5 per cent co-pay will be applicable under the plan. The sum insured options for the health product will range from Rs.50,000 to Rs.10 lakh. The premium payment modes that will be made available are yearly, half-yearly, quarterly, and monthly.
Individuals between the age of 18 years and 65 years will be able to purchase this product. The plan will be offered on an individual as well as family floater basis that will allow persons to add dependent children up to 25 years of age under the same policy. The plan can be renewed for a lifetime by the policyholder.
The IRDAI will make coverage for hospitalisation expenses, pre and post-hospitalisation expenses, out-patient treatments, health check-ups, AYUSH treatments, among others mandatory. The cumulative bonus feature will also be added to the plan.
Currently, health insurance companies offer several products with varied features. The plans are priced according to the features of the policy, making it hard for individuals to choose the best plan.
Source: Financial Express