Next after standardisation of basic health insurance plans, the insurance regulator IRDAI (Insurance Regulator and Development Authority in India) has decided to give ratings to standardise health services through ratings of hospitals. The insurer will settle claims through these ratings. The regulatory authority is seeking information from the National Accreditation Board for Hospitals and Healthcare Providers (NABH) to rate hospitals.
With this, the health insurance companies can now ask for premiums on the basis of facilities offered by the hospital. The facilities may include the number of doctors, equipment used, etc.
IRDAI has been engaged in standardisation of health insurance plans for quite some time now. It will prove to be only beneficial for potential customers as the plans will now be easily accessible for them. And as experts believe, a standardised approach will help the customers gain trust in the product which will result in health insurance penetration and they will now easily participate.
As there are many health insurance products in the market, standardisation will not only lessen the confusion for the policyholders but also create a minimum standard for health insurance in India. The Executive Director and CEO of Reliance General, Rakesh Jain believes that it is a good start and also that even the health insurance companies will come up with innovative products in the market to benefit for the potential customers after this.