A week after the Insurance Regulatory and Development Authority (Irda) came out with the

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guidelines to allow insurance companies to launch a health-plus-life insurance product, insurers have begun discussions with other industry players for possible tie-ups to launch this product.

Irda's guidelines for the “health and life combi” products is with partnerships between life and non-life insurers. Health and life combination products are expected to be available in the market beginning next financial year.

Antony Jacob, chief executive officer, Apollo DKV Insurance, said, “We have commenced preliminary discussions with a couple of life insurance players. We should have an arrangement by the end of January 2010 after which we will chalk out business plans and work on the product.”

As per the Irda guidelines, this product will be a combination of health insurance and a pure life

risk cover.

Premium for both health insurance and life cover will be separately mentioned in the policy document. On renewal, the customer will have a choice to continue with the both health plus life cover or only health ins-

urance.

At present, many life insurance companies already sell health insurance policies but these product are mostly restricted to hospital cash variety, critical illness cover (where the insured is paid a lumpsum amount on getting an illness). Sumit Rai, senior vice-president, business head (health and retirement) Max New York Life Insurance, said,

“This circular will provide opportunity to many life insurers to enter the health insurance business. It is one of the fastest growing segments. Not all life insurance companies have health insurance products, so it will give them a chance to enter this ca-

tegory.”

Insurance experts say that the move by Irda is likely to provide the necessary boost to health and term life insurance penetration in the country because life insurance companies can pool their distribution advantage with the product development expertise of a health insurer. Customers will be offered an opportunity to buy a ‘product that meets multiple requirements through a single purchase’.

In addition, customers will have a number of choices as the market will have more and more products that bring together relevant expertise from health and life insurers for the benefit of consumers.