The Insurance Regulatory and Development Authority of India(IRDAI) has decided to extend the \u2018Use and File\u2019 procedure to all health insurance products. The move is expected to facilitate faster customer access to health policies.<\/span><\/p>\n Under the current system,<\/span>\u00a0an insurance firm wishing to introduce a new product has to first file an application with the IRDAI and use the product for sale in the market only after getting all regulatory approvals\u201d.<\/span><\/p>\n Under \u2018Use and File\u2019, insurance firms are permitted to market products without the regulator\u2019s prior approval, thus avoiding a long wait.<\/span><\/p>\n This means insurance firms can quickly introduce new schemes with innovative features, enabling people to participate and cover their health expenses.\u00a0<\/span><\/p>\n The move offers flexibility to insurers to offer products that may cover the immediate needs of customers on account of a changing environment.<\/span><\/p>\n For instance, if there is a new disease that emerges, \u2018Use and File\u2019 will allow insurers to design a product covering that disease and offer it immediately, rather than waiting for approval.<\/span><\/p>\n If a customer has already taken an insurance policy launched under \u2018Use and File\u2019, and the IRDAI later raises concerns about it, then it can lead to some rethinking.\u00a0<\/span><\/p>\n The customer will continue to get the benefits of the policy for the first year, and if the insurance company makes amendments in line with the regulator’s apprehensions, the customer will still get these benefits.\u00a0<\/span><\/p>\n However, if the policy is withdrawn as a result of IRDAI\u2019s intervention, the product will no longer be available for renewal in the second year.\u00a0<\/span><\/p>\n The health insurance business is the fastest-growing segment in the insurance sector and accounts for a 33.33% market share in the general insurance industry.<\/span><\/p>\n For instance, there were 26.54 lakh claims under the Covid health insurance category until April 2022. These claims are reimbursement for treatment and hospitalization expenses. Many insurers have seen over 100% claims during the peak of the pandemic.<\/span><\/p>\n Source: <\/b>The post is based on the article <\/span>\u201cExplained: How \u2018Use and File\u2019 system will bring new health insurance products faster\u201d <\/b>published in<\/span> Indian Express <\/b>on 3rd June 2022.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":" What is the News? The Insurance Regulatory and Development Authority of India(IRDAI) has decided to extend the \u2018Use and File\u2019 procedure to all health insurance products. The move is expected to facilitate faster customer access to health policies. What is the Current System? Under the current system,\u00a0an insurance firm wishing to introduce a new product… Continue reading Explained: How \u2018Use and File\u2019 system will bring new health insurance products faster<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10500],"class_list":["post-188125","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704918315},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/188125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=188125"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/188125\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=188125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=188125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=188125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What is the Current System?<\/b><\/h5>\n
What is the \u201cUse and File\u201d procedure?<\/b><\/h5>\n
How will this be beneficial?<\/b><\/h5>\n
What if the IRDAI raises concerns over such a product later?<\/b><\/h5>\n
What is the status of the health insurance business in India?<\/b><\/h5>\n