Addressing the valedictory session of the 7th international conference on insurance on emerging competition in the insurance industry being organised by the Ficci, Mr Rangachary said, the Irda will do away with the limit of 30 per cent for premium collected by riders, if the riders are for providing health insurance. The only condition would be that the add on policies should have a maturity period of more than three to five years.
He hoped that the move will help in facilitating growth and increasing penetration of health insurance. The Irda chief, however, added the premium collected by all riders, including for health insurance, will not be more than 100 per cent of the premium collected on the life insurance policy.
He said factors such as inadequacy of proper and authentic medical data in the country and lack of medical parameters are responsible for inactive private participation in the health insurance.
Referring to the issue of motor insurance, Mr Rangachary said, the industry will have to learn to fix tariffs as many general insurance policies will be "de-tariffed" in the next two to three years. He added the profile of the Tariff Advisory Committee (TAC) would also change with times. The TAC will act as repository of statistics in future, he said.
Speaking on the occasion, banking and insurance secretary DC Gupta underlined the need for tapping rural markets by the private players in the insurance sector.
He said mandatory norms for doing business in the rural areas should, "not be looked at as an obligation but as a challenge."
Mr Gupta further said that the greatest challenge would lie in bringing forth innovative products suited to varied consumer interests in order to penetrate the market in a better way.