G Srinivasan Committee

IRDAI has set up a nine member committee headed by G

IRDAI has set up a nine member committee headed by G Srinivasan to look into the feasibility of allowing life insurers to offer indemnity-based health policies.

• Which body set up the G Srinivasan Committee?

The G Srinivasan Committee was set up by the IRDAI or the Insurance Regulatory and Development Authority of India to look into the possibility of letting life insurance firms to offer indemnity based health policies. It is a 9 member body chaired by G Srinivasan and co-chaired by M R Kumar.

• What is an indemnity based health insurance?

Indemnity based health insurance is a plan in which the policyholder will receive the actual expenditure incurred during his/ her hospital stay as reimbursement, up to the sum insured under the policy. Eg: if the insured amount is 5 lakh INR and the hospitalisation bill amounts to 2 lakh INR, then the insurance firm will pay the 2 lakh INR to the policyholder.

• What type of firms are currently allowed to offer indemnity based health insurance?

Currently, only specialised health insurance companies and general insurance companies are allowed to offer indemnity based health policies. The IRDAI set up the committee following the lobbying by private life insurance firms for entry into the growing health insurance segment.