Focus: GS-III Indian Economy
Why in news?
- Insurance regulator IRDAI said it was permitting insurers to offer standard health insurance cover Arogya Sanjeevani as a group policy.
- This version will be introduced under the same name — Arogya Sanjeevani — and terms and conditions of the standard policy retained.
- Insurers, however, get the freedom to fix the premium.
- Private and public establishments are expected to benefit from the Arogya Sanjeevani group policy, in terms of covering the medical needs of their employees.
- Also, be it in individual or group form, the Arogya Sanjeevani policy covers COVID-19.
- Under the group policy, insurers will be allowed to set their own minimum and maximum sum limits, subject to their board approved underwriting policy.
- Following its decision permitting launch of standard individual health insurance cover, all insurers dealing in health insurance are offering the product, IRDAI said.
- The permission for Arogya Sanjeevani group policy follows close on the heel of the regulator’s decision allowing insurers to group version of the Covid-specific, short term, standard health policy Corona Kavach.
- The Insurance Regulatory and Development Authority of India or the IRDAI is the apex body responsible for regulating and developing the insurance industry in India.
- It is an autonomous body. It was established by an act of Parliament known as the Insurance Regulatory and Development Authority Act, 1999. Hence, it is a statutory body.
- The IRDAI is headquartered in Hyderabad in Telangana. Prior to 2001, it was headquartered in New Delhi.
Functions of IRDA
- Its primary purpose is to protect the rights of the policyholders in India.
- It gives the registration certificate to insurance companies in the country.
- It also engages in the renewal, modification, cancellation, etc. of this registration.
- It also creates regulations to protect policyholders’ interests in India.
Composition of IRDA
The Section 4 of the Insurance Regulatory Development Authority (IRDA) Act, 1999 specifies the composition of authority which consists of 10-member team appointed by the government of India which includes:
- One chairman
- Five whole time members
- Four part time members
-Source: The Hindu