To make health insurance more customer friendly, every such medical plan by a general insurer or standalone health insurer will soon carry a colour code.
The colour codes will indicate the level and extent of the complexity of the product.
Earlier, mutual funds had a colour-coding system to denote the riskiness of the product. However, that has now been replaced by labels showing high risk or low risk.
The Insurance Regulatory and Development Authority of India (IRDAI) has said that to calculate whether a health plan is simple or complex, a set of scores will be given to the product based on its terms and conditions.