Big boost for LIC, SBI Life, HDFC Life, ICICI Prudential, other insurers; here is what Modi government is mulling

The Narendra Modi Government is mulling to allow life insurance companies to sell mediclaim health insurance policies. If the Modi Government does that as by Zee Business TV, life insurance companies like LIC, SBI Life, HDFC Life, ICICI Prudential and other insurers will get a major boost as they will be able to sell indemnity health insurance policies, which they can't sell in current system.

Currently, life insurance companies are allowed to sell fixed benefit insurance plans only. In fixed benefit insurance plans, the insured is given a fixed amount after the particular disease is diagnosed. If the Modi Government's proposal is passed then standalone health insurance companies will receive a big hit in their business as they will have to share their market with life insurance companies while the decision to allow life insurance companies to sell indemnity health insurance plans will give extra avenue for revenue to the life insurance companies like LIC, SBI Life, HDFC Life, ICICI Prudential, etc. Therefore, standalone health insurance companies are protesting against the Modi Government's proposal in this regard.

See Zee Business Live steaming below:

In the present market scenario, only General Insurance and standalone health insurance companies are allowed to sell mediclaim health insurance policies. Once the Modi Government's proposal gets approved, both health insurance and life insurance fall under the same category. Globally, both life insurance and health insurance fall under the same category. Therefore, insurance industry observers are looking at this Modi Government's move to bring the Indian insurance market at par with the global insurance market standards.