The Insurance Regulatory and Development Authority of India (IRDAI) has proposed setting up a new platform for the sale, servicing, and claims of insurance policies, according to CNBC-TV18."All products from life, general and standalone health insurers to be listed on IRDAI’s proposed platform," sources told the channel. In order to sell policies, agents will have to become platform members. They can sell it from all insurance companies once they become members.
#CNBCTV18Exclusive | #IRDAI proposes setting up a new platform for sale, servicing & claims of insurance policies. All products from Life, General & Standalone Health Insurers to be listed on IRDAI’s proposed platform, say sources to @YashJain88
Here's more pic.twitter.com/SapSyDzoTp— CNBC-TV18 (@CNBCTV18Live) August 11, 2022
The insurance regulator believes that the platform will help insurance penetration in tier 2, and 3 areas and will also bring down existing commission rates. IRDAI plans to roll out the platform by December this year.
Earlier, the IRDAI committee was likely to propose allowing life insurers to sell health insurance. The committee may seek a nod for the distribution and manufacture of health insurance.
The committee cited improved penetration, and global practice to support the move. Presently, life insurers sell only fixed benefit health plans and not indemnity products. As per IRDAI, 75 percent of people pay for medical expenses from their own pockets.
Meanwhile, it was reported earlier that life insurance companies will now have the freedom to launch a wide range of products without the prior approval of the IRDAI.Close on the heels of the ‘use-and-file’ policy for general insurance products, the insurance regulator had extended the framework to life insurance policies as well. From insurers’ perspective, the move will facilitate the quicker launch of products.