The directions are also applicable for personal accident and travel insurance cover.

In a circular, the Insurance Regulatory and Development Authority of India (IRDAI) said general and standalone health insurers are not allowed to modify existing benefits and add new benefits in the existing products, which leads to imposing an increase in premium. It said insurers are permitted to effect minor modifications in accordance with ‘Consolidated Guidelines on Product filing in Health Insurance Business’ issued in July last year.“Addition of new benefits/ up-gradation of existing benefits may be offered as add-on covers or optional covers with a standalone premium rate to ensure an informed choice to the policyholders.”.

The regulator has asked appointed actuaries to review the financial viability of every health insurance product at the end of a financial year. Such a review should be submitted to the insurer’s board along with an analysis of favourable or unfavourable experience of each product as well as recommended corrective action to ensure sustainability of the product as well as to protect the interests of policyholders.