BENGALURU: To make life simpler for policyholders, Irdai might look into a system of colour-coding health insurance policies to easily access its complexity.
In an exposure draft, an Irdai working group proposed the colours “green, orange, and red” – with green ones being the least complex and red the most. “The colour code on policies will be put up on the websites of insurers so that the customers can make an informed choice,” Irdai said.
The proposed guidelines would not be applicable to individual health products and not the group health products offered by corporates to employees or the ongoing state and national health insurance schemes.
The colour-coding will be based on a scoring method between 0-6 — depending on factors like the number of optional covers offered, percentage of co-pay, number of months of waiting period, number of treatment procedures/ diseases under sub-limits, deductibles, number of permanent exclusions, and simplicity of terms and conditions. Based on these criteria if a product gets a score of 2 or less it will be green-coded, 2-4 will be orange and above 4-6 will be red.
“We feel the color coding initiative will help curb 1) mis-selling and 2) customers misunderstanding what they are buying, and thereby helping reduce unpleasant surprises at the time of claim. It will also increase transparency and faith in the health insurance ecosystem,” said Amit Chhabra, health insurance, business head, Policybazaar.com.
The regulator has sought comments from stakeholders by October 15 to the draft proposal.



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