Insurance: Fine Print

Raj Pradhan 21 November 2016

Delhi HC Seeks IRDAI’s Response on HIV/AIDS Cover

Apublic interest litigation (PIL), filed with the Delhi High Court (HC), seeks inclusion of people with HIV and AIDS in life and health insurance policies. The PIL alleges discrimination against people living with HIV and AIDS (PLHAs). The HC issued a notice to the ministry of health, public sector insurance companies and Insurance Regulatory and Development Authority of India (IRDAI) seeking their reply by 17 January 2017. The PIL contends that, the Centre had said in 2013 that by 1 April 2014, insurance cover would be available to all PLHAs. IRDAI had asked all insurance companies to put it in place by 1 April 2014; but this has not happened. The PIL claims that 100 lives are lost each day to the diseases due to ‘unaffordable medical care’ and alleged that PLHAs are ‘being neglected and discriminated against’; even simple accident benefit cover is not provided to them.

Will Air Pollution Raise Health Premium?

Air pollution has been on the rise in India with high levels of smog after Diwali. New Delhi has witnessed a record level of pollution and smog; other metros too have high pollution. Hospitals in New Delhi have seen 30% rise in respiratory and ocular complaints post-Diwali. Apart from impacting lungs and heart, pollution also affects eyes which are sensitive and prone to irritation from allergies, chemicals and pollutants in the air. Health insurance products are popular in metros and have lower penetration in smaller cities. Health insurance trends show an increase in the number of claims due to respiratory problems, especially in areas where pollution levels are high. Health insurance costs can go up 10%-20% if you are suffering from respiratory problems. The increase is dependent on the customer’s age with a possibility of higher premium for senior citizens.

Reliance Life Penalised Rs15 Lakh

IRDAI has slapped a penalty of Rs15 lakh on Reliance Nippon Life Insurance for violation of outsourcing norms and other regulations. The regulator said that many channel development associates (CDAs) were not imparting training and there was no adequate office space. The objective of appointing CDAs is questionable and making payments to CDAs increases the costs to the insurer in violation of corporate governance guidelines.

Car Premium Linked to Driver Behaviour?

Currently, car insurance premium is based on the make, model, year of manufacture and location of the vehicle. Unlike in the US and other countries, in India, it is not based on the driver’s record. Insurance companies may introduce ‘Telematics’ to arrive at better pricing of motor insurance. It is a technology of long-distance transmission of driving quality which can help good drivers reduce their premium. The device captures driver behaviour with parameters like speed, braking, etc. The device plugs into the car’s on-board diagnostics (OBD) and can relay data on the quality of driving and usage of cars to the insurer.

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