The insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) made intense efforts throughout the pandemic to ensure an adequate choice of insurance policies for individuals. IRDAI make sure that there will be policies that cover treatment costs for coronavirus-related health issues.
The introduction of standard products to enhance consumer confidence and also easier Know Your Customer (KYC) norms are the regulator’s noteworthy initiatives. For covering the cost of treatment related to coronavirus the Insurance Regulatory and Development Authority of India (IRDAI) directed insurance companies to design specific products. The move paves the way for the launch of short –term Corona Kavavch policy. The regulator introduced several new insurance products such as Corona Rakshak, Corona Kavach and Arogya Sanjeevani.
The IRDAI asked insurers to expeditiously settle hospitalisation claims concerning treatment related to coronavirus infections from March as the time in which COVID-19 started spreading. The Chief Business Officer of Policybazaar.com, Tarun Mathur expressed that the introduction of standard insurance plans by the insurance regulatory body makes it easier for customers to select services owing to the standardisation of the process and effortless accessibility of provided services.
The Chief Financial Officer of HDFC Life, Niraj Shah stated that the regulator is supporting the creation and distribution of products and they are very proactive and customer-centric and offer relevant benefits to customers. The new reforms such as OTP (One Time Password)-based consent can be obtained for insurance plans and the introduction of video KYC were the attraction for the industry as well as the consumers.
IRDAI issued a circular to all life insurers directing them to come up with a standard individual term life insurance product named ‘Saral Jeevan Bima’ in an attempt to make insurance affordable and available for all categories of the society. The plan is aimed at providing protecting citizens of the country and it will be a revolutionary move. ‘Saral Jeevan Bima’ will launch on January 1, 2021. The products related to COVID-19 came out in July. The industry is expecting that the IRDAI will keep up the tempo in 2021 also.