Irda unveils norms for health-life combo product

The Insurance Regulatory and Development Authority came out on Wednesday with guidelines on combining a pure term plan and a health policy. The policy will be called a 'Health plus Life Combi Product'.

Under the guidelines, life and non-life insurance companies can come together to offer this health-plus-life cover. Health insurance under this scheme will provide sickness benefits, medical, surgical or hospital expenses benefits, whether in-patient or out-patient, on an indemnity or reimbursement basis and the life insurer will offer a pure term product.

The regulator said the product could be offered both to individuals and groups.

However, in respect of health insurance floater policies, the pure term life insurance coverage is allowed on the life of one of the earning members of the family, who is also the proposer for health insurance policy, subject to insurable interest and other applicable underwriting norms of respective insurers.

Insurers forming the tie-up will have to take prior approval from the regulator. One of the insurers will work as the lead insurer and will facilitate underwriting and service of the policy.

The life insurer will underwrite the life side of the risk, while the health insurance portion will be underwritten by a non-life insurer.