The Insurance Regulatory and Development Authority (IRDA) has finalised and gazetted various new rules for the segment.
These cover Initial Public Offers (IPOs) by general insurers, amalgamations between life insurers, one on third-party administrators (TPAs) in the health insurance segment and for health insurance coverage entry cannot be denied up to the age of 65 years and renewal cannot be denied due to age, except in foreign travel, among other things.
On IPOs by general insurers, it has said only those in operation for at least 10 years would be allowed to do so.
In the norms finally gazetted, it says this grant of approval would be valid for only a year, within which the company would have to file the Draft Red Herring Prospectus with the Securities and Exchange Board of India (Sebi) under the Issue of Capital and Disclosure Regulations.
Among the other guidelines gazetted, the IRDA (Scheme of Amalgamation and Transfer of Life Insurance Business) Regulations say companies in this segment would have to give a two-month notice of an intention to implement the scheme. And, this should be prior to applying.
IRDA says it might direct such companies to send a copy of this application to every Indian who is a policyholder. After in-principle approval, the life insurer would need to take approval from other relevant authorities such as the Foreign Investment Promotion Board, Sebi, Reserve Bank of India and Competition Commission of India.
After getting these approvals, a final nod would be needed from IRDA.
As for TPAs, they must take prior IRDA approval to change their shareholding when exceeding five per cent of paid-up share capital.
The health insurance guidelines specify that entry age for a policy can be up to 65 years. Renewal cannot be denied on the ground of age, except in travel insurance.
The guidelines have allowed non-allopathic treatment to be provided coverage, provided treatment has been taken in a government or government-authorised institution. An option to migrate to another suitable health insurance policy has been given to a consumer.
