Insurers may get to sell related non-insurance value added products and services but not MFs
Subscribe to enjoy similar stories. Auto repair from your car insurer and fire extinguishers courtesy your home insurer? Not outlandish ideas, but part of the government's plans to allow insurance companies to sell related products and services.
The government may allow general insurers to bundle their core insurance products with non-insurance products and services to increase insurance penetration and allow companies to offer competitively priced insurance products, two persons aware of the plans said. The plan, if rolled out, will allow the sale of gym memberships and basic healthcare by health insurers; vehicle repairs, diagnostic services and roadside assistance bycar insurers; and safety consultations, fire extinguishers and safety alarms from home insurers.
The thinking is that insurers would provide comprehensive risk mitigation solutions that would help reduce the incidence of losses for them, resulting in better-priced products and lower overall risk for the nation, one of the two persons cited above said on the condition of anonymity. Insurers have sought amendments to permit the sale of value-added services as they try to deliver new and valuable services to customers, the finance ministry said, citing the Insurance Regulatory and Development Authority of India (Irdai).
“The proposal to enable insurers and insurance intermediaries to provide services related or incidental to the insurance business as specified by Irdai is under consideration," the ministry said in response to the observations of the Parliament's standing committee of finance on the matter. The second person cited above said that the finance ministry is working on the Insurance Amendment Bill, which will also redefine insurance.
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