You will soon be able to buy health and life insurance as one single product. Health plus life combi products will combine term policies from life companies and health insurance from non-life companies.
The insurance regulator, Insurance Regulatory and Development Authority, or IRDA has put guidelines in place for these products. These products can be promoted by both life and non-life companies. It can be sold either at an individual level or at the group level.
According to the guidelines laid down by the IRDA, companies offering these products will have to put in place a memorandum of understanding, which will cover the modus operandi of the marketing, policy servicing and expense sharing.
An approval from the insurance regulator IRDA will be required before two companies tie up. Only one life and one non-life companies can tie up. Multiple tie-ups will not be allowed. The underwriting of the risks will have to be shared by the companies respectively. The claims arising out of it will also be shared in the same manner, the IRDA guidelines stipulate.
The guidelines further specified that these products can be filed with a common brand name that is mutually acceptable to both companies.
Companies have been eagerly awaiting these products. They feel it will make insurance buying easier for policy holders as well as improve insurance penetration in the country.
