IRDA Perceives Health Insurance Ventures Require 33% Less Investment Capital

The Insurance Regulatory and Development Authority of India (IRDAI) is of the view that health insurance companies can operate at 33% lesser capital investment than automobile section. This is due to the fact; the health insurance claims are lower as compared to motor insurance claims.

Read More

Get ₹5 Lac Health Insurance starts @ ₹200/month*
Tax Benefitup to Rs.75,000
Save up to 12.5%* on 2 Year Payment Plans
7 Lakh+ Happy Customers

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Get insured from the comfort of your home No medicals required
I am a

My name is

My number is

By clicking on ‘View Plans’ you, agreed to our Privacy Policy and Terms of use
Close
Back
I am a

My name is

My number is

Select Age

City Living in

    Popular Cities

    Do you have an existing illness or medical history?

    This helps us find plans that cover your condition and avoid claim rejection

    Get updates on WhatsApp

    What is your existing illness?

    Select all that apply

    When did you recover from Covid-19?

    Some plans are available only after a certain time

    Currently, the capital obligation for establishing an autonomous health insurance company is capped at Rs. 100 crore in the Insurance Bill. However, IRDAI has requested the government to reduce this investment to Rs. 50 crore.

    Until recently, the health insurance category was a part of general insurance and insurers launch annual products. Now with an exclusive category, firms can design innovative health insurance products with longer tenure and greater benefits. Currently, there exist five independent health insurance companies, and the latest entrant is Birla MMI.

    With the amended foreign direct investment (FDI) bill-a 49% increase in the investment limit, the insurance companies expect improvement and expansion of their products. Moreover, the health insurance committee is working out the product details for health savings accounts.

    The officials at IRDAI have deployed risk-based capital method for evaluating solvency margins for establishing autonomic health insurance firms, and discovered that only 100% of liabilities, excluding assets are needed to create solvency- and this is lower than the150% margin as per the industry standards. Now there will be different statistical figures for commission rates and for management expenses in the stand-alone health insurance sector.

    Health insurance is today a rapidly emerging sector of general insurance industry, a 20% increase in the premium holdings has been reported in 2014-15 as compared to 9% for the broader pie. Subsequently, global insurers like Aetna (U.S.) and Discovery (South Africa) have been exploring JV options for launching their health insurance subsidiaries in India.

    Source: This news was published on May 19, 2015 in economictimes.indiatimes.com under the title: “Irda may reduce capital requirement for health insurance ventures by 33%”

     

    Search
    Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

    Health insurance articles

    Recent Articles
    Popular Articles
    Does Health Insurance Cover Brain Tumour?

    17 May 2022

    The brain is one of the most important organs in your body. It is...
    Read more
    12 Tips to Avoid Common Health Problems During Summers

    12 May 2022

    India experiences a hot and dry summer season that lasts for up to...
    Read more
    Does Medical Insurance Cover Hearing Aids?

    12 May 2022

    The number of people who require hearing aids continues to grow...
    Read more
    Are Accidental Injuries Covered by Health Insurance in India?

    12 May 2022

    Accidents are unpredictable. Getting injured in an accident not...
    Read more
    6 Most Effective Ways to Prevent Viral Fever

    12 May 2022

    A change in weather can bring respite from the scorching summer...
    Read more
    PMJAY Scheme: Ayushman Bharat Yojana Eligibility & Registration Online
    Prime Minister Shri Narendra Modi announced the launch of (PMJAY) Ayushman Bharat Yojana in his Independence...
    Read more
    Best Health Insurance Plans in India 2022
    Finding the best health insurance plan from so many different health insurance companies can get confusing for many...
    Read more
    Best Maternity Insurance Plans
    Maternity insurance offers comprehensive coverage for medical expenses incurred during pregnancy, including the cost...
    Read more
    Best Health Insurance Plans for Senior Citizens in 2022
    Considering the increase in medical inflation in India, buying adequate health insurance for your loved ones has...
    Read more
    10 Major Benefits of Ayushman Bharat Yojana
    Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi...
    Read more
    top
    Close
    Download the Policybazaar app
    to manage all your insurance needs.
    INSTALL