Health Insurance Reflects an 80.7 percent Renewal Ratio: Nadda
New Delhi: The IRDAI (Insurance Regulatory and Development Authority of India) has announced that of the 92.67 lac policies due for renewal in 2014-15, 74.79 lac have actually been renewed, amounting to an 80.7% renewal ratio. This was stated by the Health Minister, Shri J P Nadda in a written reply to the Lok Sabha.
According to the Health Minister the IRDAI had made clear that there were various extraneous factors that prompted policy holders from abstaining from a policy renewal, one being affordability to continue remittance of premium. He clarified, that all health Insurance products offered were designed and offered in accordance with various regulatory provisions in vogue like IRDAI (Health Insurance) Regulations, 2013, IRDAI (Protection of Policyholders Interests) Regulations, 2002.
Clarifying the stance of the IRDAI, the Health Minister said that policy holders are expected to make informed choices before taking any decision to buy an insurance policy.
Highlighting upon the various types of insurance covers offered Mr. Nadda told the parliament that there were over 600 approved health insurance products of all non-life insurance companies available in the market which carried a variety of features, categorizing them into providing cover for domestic hospitalization, defined critical illnesses, unexpected hospitalization during overseas travel, accidental temporary/permanent disability and accidental death to cater to the needs of the heterogeneous segments of the Indian population.
He assured the parliament that all the products designed and priced on actuarial principles were filed with IRDAI as per File and Use guidelines for clearance of the Authority before launch.
All these products are being marketed by various distribution channels viz. Individual agents, Corporate agents (Banks or otherwise), Brokers, Direct sale - on-line across the country both at the urban and rural ends the minister added.