"We have sent a request to the regulator. Now, we will have to wait and see if this will be permitted and for which segment," said the chief executive of a large insurance company.
General insurance companies are looking to avail of a facility of offering health insurance on equated monthly installments (EMIs). The insurers have approached the regulator to seek guidelines on this matter.
Sources said that the regulator may allow it above annual premiums of Rs 20,000 and above.
A proposal has been sent to the Insurance Regulatory and Development Authority of India (IRDAI) to see if this structure of premium payment can be allowed under the current regime. This is to make health insurance premiums more affordable.
"We have sent a request to the regulator. Now, we will have to wait and see if this will be permitted and for which segment," said the chief executive of a large insurance company.
At present, premiums have to be paid at one go. If installments are allowed, policyholders will be allowed to pay a monthly installment. However, for very small-ticket policies this may not be allowed since it will be a challenge to collect monthly premiums unless it is an auto-debit facility.
IRDAI is already exploring the possibility of insurers paying health claims on EMIs. This will be applicable for benefit-based health insurance and personal accident claims on installments, if a proposal to this effect is approved. The insurance regulator has set up a working group to look into the possibility of having such a payment mode by insurers.
IRDA has said that some general and health insurance have proposed payment of claims in installments for personal accident plans as well for lump sum payouts in health insurance.
For a standard health policy, the premium ranges from Rs 35,000-40,000 per year. Allowing payment through EMIs would mean that more customers would be ready to buy it.
Health insurance is seeing the highest rate of growth in premiums in the sector with annual increase of 40-45 percent. Medical inflation stands at 20-22 percent on an annual basis.
