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