Should life insurance companies be allowed to sell indemnity health insurance plans? IRDAI’s committee opines this!

In order to widen the reach of health insurance plans and take it to all the nooks and corners of the country, industry-wide discussions have been ongoing if life insurance companies should be allowed to sell indemnity health insurance plans. Zee Business’ Anurag Shah reports.

Insurance Regulatory and Development Authority (IRDAI) also constituted a committee and Zee Business has learnt through its sources that that committe has given its nod to the companies with respect to just distribution of such products. This means that the life insurance companies will be able to offer these products like corpoate agents.


The sources have revealed that India’s largest life insurer Life Insurance Corporation of India (LIC) with over 60 per cent market share, was also not too keen on launching indemnity health insurance products. The comany wants to focus on its current offerings and is striving to ensure further growth.

However, private companies like HDFC Life are keen to enter into this segment, given the growth potential, Shah said.


The life insurance companies in India,currently are offering fixed-based health insurance  which means that a lump sum ammount is given for the illnesses covered under the policies and do not offer a cover that includes hospital, medicines etc.

Policies which cover hospitals, medicines and other expenses are labeled as indemnity health insurance policies which are offered by General Inurance companies or stanalone health insurance companies.

Even General Insurance companies have their own problems in this regard as if the health insurance companies are given a go ahead to launch indemnity health insurance plans, then the whoe sector will undergo a significant change.

Even the regulator will have many challneges if this happens.

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