CABINET APPROVES RS.2500 CRORES FOR 3 INSURANCE COMPANIES

3 PSU INSURANCE COMPANIES RECEIVES FINANCIAL BACKING FROM GOVT.

Committee of Cabinet Ministers headed by Prime Minister of India approved Rs.2500 crores on 12th February 2020 to improve the solvency margin of three state owned non-life insurance companies viz. The Oriental Insurance Co.Ltd., National Insurance Co.Ltd. and United India Insurance Co.Ltd., which are reeling under the mandatory solvency margin norms set by IRDAI.

For the first time in the history of insurance in India such type of infusion is taking place. Though Banking sector have received state backing on many occasions. Earlier in 2017 a move was initiated to merge these three companies to form the biggest General Insurer of India. In the budget proposals this year Rs.6900 is marked for infusion in these companies. The allocation of 2500 is the first installment towards this move and objective. As per estimates there shall be requirement of over 12000 crores to revamp the health of the PSU Insurers before listing as one strong combined entity.
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STANDARDISATION OF HEALTH INSURANCE - MODIFICATION OF PRE-EXISTING DISEAS CLAUSE

STANDARDISATION OF HEALTH INSURANCE - MODIFICATION OF PRE-EXISTING DISEASE CLAUSE

IRDAI vide circular ref. no. IRDAI/HLT/REG/CIR/046/02/2020 dtd. 10/02/2020 has modified the provision relating to pre-existing condition as spelt out under Ref No. IRDAI/HLT/REG/CIR/177/09/2019 and Modification Guidelines on Standardization in Health Insurance vide Ref No. IRDAI/HLT/REG/CIR/176/09/2019 dated 27^th September 2019.

Now the implication of pre-existing disease relating to denial of any claim with respect to "A condition for which any symptoms and or signs if presented and have resulted within three months of the issuance of the policy in a diagnostic illness or medical condition" as described under sub-point (c) stands deleted.

However, the 48 month clause shall remain as it is.