annual report 2009-10 - IRDA

ANNUAL REPORT 2009-10In the days to come, the market may also see innovative health products covering alternative medicaltreatments like AYUSH, since the government has been emphasising the need for the insurancesector to extend the coverage to indigenous systems of medicine.Also foreseeable in near future is incorporation of savings element in the health indemnity covers foryounger policyholders who can avail tax advantages now and can build up health protection for oldage.The innovative spirit of the health insurance industry has blurred the lines between life and non-lifecovers. Recently, the Authority has received proposals to consider offering pure term life insuranceproducts along with health insurance products under the umbrella of a single product. The Authorityhas allowed the same as a product class within a broader policy framework of ensuring an informedchoice and effective policy service to the policyholders. It is envisaged that the combi-products couldenhance the penetration of personal lines of insurance business with a wider product choice topolicyholders. While IRDA adopts a business facilitative approach, it is expected that all insurancecompanies would put in place prudent market conduct practices and operational procedures forprotecting the interests of policyholders.A few insurance companies are also designing niche products with the concept of covering “nonadmissibleexpenses”, which generally form part of standard exclusion in indemnity hospitalisationpolicies. There are no limits to insurance companies experimenting with innovative product designs.However, below poverty line (BPL) families and low income, small town population, are yet to betargeted/tapped significantly by the insurance industry to provide coverage to those who are in direneed of health insurance. In fact, these segments could actually be used to increase insurancepenetration in the country.As a measure to reinstate the Authority’s agenda of improving insurance coverage to weaker sectionsof the society, IRDA has conceptualised a composite standard product to provide a comprehensivepackage of insurance covers to persons belonging to economically weaker sections in rural and urbanareas. The standard product could become the primary instrument for fulfilment of the rural and socialobligations of insurance companies under the Insurance Act, 1938. It is envisaged that the productwill have defined options and levels to provide choice and flexibility to customers to cater to individualneeds.Third Party Administrators (TPA)I.4.6.10 During 2009-10, no new licence was grantedby the Authority to Third Party Administrators.However, a couple of new applications are beingprocessed by the Authority. The following TPAlicences were renewed by the Authority during2009-10.TABLE 46TPA LICENCES RENEWED DURING 2009-10Name of TPA1 Grand Healthcare2 Dedicated Healthcare Services3 Vipul MedcorpI.4.6.11 The health insurance segment showed stronggrowth during the year under review and the TPAs asparticipants in the health insurance delivery chain,reflected similar performance. The TPAs furtherexpanded the network of hospitals eligible fortreatment by the policyholders during the year.I.4.6.12 The Table 47 provides details of infrastructureadded by the TPAs during 2009-10.46