Kathmandu. India’s Finance Ministry has urged the Insurance Regulatory and Development Authority of India (IRDAI) to increase monitoring of insurance companies.
The Finance Ministry has also directed IRDAI to be more stringent in the matter of claim payment and grievance redressal. The ministry issued the directive after it was found that the premium of health insurance had increased rapidly last year. Due to this, the coverage of health insurance is still slow, the ministry said.
This was clearly stated at a meeting between senior finance ministry officials and IRDAI representatives last week. The Government of India has expressed concern over premium increases in health insurance, complaints related to claim payments and corporate good governance issues (especially some stand-alone health insurance companies).
Health insurance premium surged nearly 15 per cent in India this year. Because of this, many insurers have given up their insurance plans or not expanded them.
According to the latest data, india’s total insurance coverage was 4.2 per cent in 2021-22. In June 2022-23, it has come down to 4 percent.
Meanwhile, life insurance coverage in India has come down from 3.2 per cent to 3 per cent. While non-life insurance is at 1 percent.
The stakeholders are of the view that some new rules and regulations should also be made before passing the Insurance Amendment Bill, if necessary. The Finance Ministry has expressed hope that irdai’s board will reconsider these big issues.
