Cheering the health insurance policy holders, the issue of health insurance portability has finally taken shape and just waiting for the approval from the Insurance Regulatory and Development Authority(IRDA)
The General Insurance Council (GIC), which is the self regulatory body of non-life insurance companies, has taken a decision on portability of health insurance products on Friday.
Now, the proposal on health insurance portability would be sent by GIC to the insurance regulator, IRDA for its approval. The decision to this effect was taken by the GIC during its meeting held in Mumbai on Friday, confirmed SL Mohan, general secretary, GIC.
When contacted by FE, J Hari Narayan, chairman, IRDA, said that ?We are very much in favour of the issue and in fact we had been working with GIC for past three-four months on it and I am happy to know that they have taken a decision on it?.
However, Narayan was quick to add that he would go through the contents of the proposal, which was being sent by GIC, before finally approving it.
Narayan added that some of the flexibility that have been provided by IRDA to the general insurance companies on new products will also be applicable to the forthcoming health insurance products with added feature of portability. FE had earlier reported that GIC was likely to take a decision on it.
The new product, which was likely to be launched by the non-life insurers on IRDA?s approval, will be available in the form of an indemnity product in which there will be a provision for the reimbursement of factual expenses made by the policyholders on the portable products, said a source.
The health insurance segment has been the growing rapidly in recent times . IRDA is expected to announce other important measures to improve the services in the segment.