Insurance policies become flexible

Chennai: Soon, the customer will be able to pay his general insurance premiums monthly, quarterly or half-yearly as the Irdai has permitted general and health insurance companies to make minor modifications in the approved individual insurance products, riders and add-ons on a certification basis.

Minor modifications will pertain to addition of premium payment options such as frequency / payment of premiums in installments, addition of distribution channels and change in the base premium rates, not exceeding + or – 15 per cent of the premium rates of originally approved product.

Modifications also could be made on addition of approved standalone riders or add-ons to the approved individual health insurance products, minor changes in policy wordings, change in the name of the approved product, change in sum insured options made available to policyholder within the sum insured range filed and decrease in minimum and / or increase in maximum premiums and maximum entry age.

Premium table can be extended, list of day care procedures can be expanded and critical Illnesses covered can be added.

“Some major changes are that the regulator has allowed is that firstly the premiums can be collected in various frequencies or installments such as monthly, quarterly or half-yearly which were earlier collected on an annual basis without filing with the regulator. Secondly, minor changes can be made in the policy document in order to bring in more clarity or more transparency in order to help the insured understand the product offering better without making any changes in the policy coverage terms and conditions,” said Head–Retail Health, PA and Travel Underwriting of Bajaj Allianz General Insurance.