Insurers can offer diabetes, long-term accident covers

Insurance companies have also been allowed long-term personal accident policies that can now coincide with the tenure of personal loans.
"This (new norms) will allow us to experiment with a policy on a limited scale," said Segar Sampath Kumar, executive director, New India Assurance. He said the company could look at things like coming out with a scheme for diabetes where it is unclear how the claims experience will be.

There will be more innovation in health insurance with companies floating niche policies as new regulations allow ‘pilot policies’ that can be discontinued before five years. This new feature will help insurers overcome fear of coming out with popular schemes as they would be stuck with the policy due to a lifelong renewability clause.

At present, the insurance regulator requires that once a policy is issued, the insurance company has to continue and renew the plan as long as the policyholder pays the premium. This was to ensure that customers were not left high and dry due a change in strategy of the insurance company. Full Story

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