The Aware Consumer

In a bid to make it easier for thousands of health insurance policyholders, the insurance regulator has proposed to make customer information sheets (CIS) simple and easy to understand. A customer information sheet gives you a glance at the key policy details in a summarised format. Usually, the insurer provides a customer information sheet with the policy at the time of purchase and renewal of the policy. Now, the Insurance Regulatory and Development Authority of India (IRDAI) has suggested changing the existing format of the customer information sheet. “To ensure that the health insurance policy information is provided in a simple and easily understandable language, it is proposed to revisit the customer information sheet,” the insurance regulator mentioned in a draft proposal dated August 30, 2023. “Typically, the policy document is rather lengthy, and policyholders must carefully examine crucial information. However, policyholders will be able to obtain facts like as exclusions, waiting periods, financial limits of coverage, and claim procedures in very simple words in this overhauled customer information sheet,” said Rakesh Goyal, Director of Probus Insurance Broker. If finalised, it will further help policyholders understand the complex terms and procedures related to their health insurance policies better, said Abhishek Kumar, a SEBI-registered investment adviser and Founder of SahajMoney.com. Let’s take a look at the key changes in the proposed customer information sheet of health insurance policies. The new format of customer information sheet will ensure that policyholders receive all of the basic information regarding the coverage. “The proposed CIS format is simple, and conversational in nature,” said Bhaskar Nerurkar, Head, Health Insurance Administration, Bajaj Allianz General Insurance. Health insurance: Type of policy and sum insured At present, the customer information sheet does not mention some critical information that the insurance company will need to add if the draft proposal is accepted in the current form. According to the proposed format, the customer information sheet will have a few new sections such as what type of policy it is — indemnity, benefit, or both, added Kumar. Further, the CIS will have to specify the sum insured amount under individual as well as family floater policies, he mentioned. Health insurance: Financial limits of the coverage The proposed customer information sheet has merged some of the previous sections such as payment basis and loss sharing under a new section, financial limits of the policy, added Kumar. The new CIS further breaks down the complex terms of a health insurance policy including sub-limit, co-payment, and deductible, and mentions them in straightforward language, barring jargon or technical terms. This is how the customer information sheet will look as per IRDAI proposal Health insurance claim settlement turnaround time The proposed customer information sheet will contain the details of procedures that have to be followed for cashless service as well as for reimbursement of claims including pre- and post-hospitalisation. The format, according to the IRDAI proposal will be as follows: Turn Around Time (TAT) for claims settlement: XX Further, the insurer has to provide the details/web link for the following: i) Network Hospital details ii) Helpline number iii) Downloading/getting claim form This information aims to speed up your health insurance claims, say experts. “IRDAI’s proposal to amend the CIS, or customer information sheet, is definitely a customer friendly move. It will provide policyholders with a quick, convenient guide about their policy will also provide a hassle-free experience at the time of hospitalisation, as they will not have to deal with voluminous policy documents. Additionally, this simple-to-follow and uniformly formatted customer information sheet will help policyholders understand policy clauses, any restrictions, sub-limits, claim procedures, and requirements with sheer ease,” said Amit Chhabra, Chief Business Officer – Health and Travel Insurance, Policybazaar.com. Health insurance: Contact of grievance redressal officer The customer information sheet will include the contact details of the company’s grievance redressal officers and IRDAI-appointed ombudsman offices. Thus, health insurance customers can easily raise their complaints if they have any grievances. Health insurance: Free look period, how to port your insurance There will be a separate column about things a health insurance customer needs to know. It will specify the free look period (you may cancel the policy within xx days if you do not want it) and the process, policy migration and portability (the process for migration and portability at the time of renewal) and clauses of policy renewal (except on grounds of fraud, moral hazard or misrepresentation or non-cooperation, renewal of your policy will not be denied, provided the policy is not withdrawn). When compared to the existing CIS, the proposed format seems easier and simpler to understand. “It remains a great way for customers to understand the terms and conditions of the product they intend to purchase and brings in greater transparency,” Nerukar added. “The regulator aims to distill the intricacies of insurance features and terms into an easily understandable format, essentially encapsulating the idea of enabling informed decision-making. It provides consumers with the assurance required to navigate the intricate realm of health insurance effectively,” says Amrit Singh, Co-Founder and CRO, Loop, a healthcare startup. Health insurance: Disclose pre-existing diseases, know your obligations While purchasing a policy, you also have a few responsibilities. You must disclose all your pre-existing diseases and conditions to an insurer before buying a policy. Do note that hiding your pre-existing conditions will be termed as fraud and it will affect your claim settlement. IRDAI has also asked the insurer to mention other material information that a policyholder needs to disclose during the policy period. Further, the insurer must provide an online link to where the product-related documents including the customer information sheet are available on the website of the company. “With easy digital access proposed in the exposure draft, it would be easier for customers to understand product-related information,” Nerukar mentioned. 6 Sep, 2023 Source : The Economic Times

The Bima Sugam platform, initially slated for a January 2023 and then an August 2023 launch, is facing its third postponement. A new launch date has been set for June 2024, according to a recent report by Asia Insurance Post. Live TV The Insurance Regulatory and Development Authority of India (IRDAI) has initiated crucial processes to pave the way for Bima Sugam’s eventual launch, the report said. A Request for Proposal (RFP) has been issued to appoint a project consultant, marking a significant milestone in the project’s development. The regulator has also established a committee, which will serve as the supreme decision-making body overseeing the creation and operation of the Bima Sugam platform, as outlined in the report. The committee comprises prominent figures from the industry including Rakesh Joshi, the Finance and Investment member of IRDAI; Anup Bagchi, the MD & CEO of ICICI Prudential Life Insurance; Naveen Tahilyani, the MD & CEO of Tata AIA Life Insurance; Mahesh Balasubramanian, the MD & CEO of Kotak Life Insurance; Nilesh Garg, the MD & CEO of Tata AIG General Insurance; Prasun Sikdar, the MD & CEO of Manipal Cigna Health Insurance; Inderjeet Singh, the Secretary General of the General Insurance Council; and Satyendra Nath Bhattacharya, the Secretary General of the Life Insurance Council. To navigate the intricate legal aspects of the project, the IRDAI has enlisted the services of Cyril Amarchand Mangaldas (CAM) as its legal counsel. CAM’s responsibilities include the incorporation of a Section 8 not-for-profit company, which will serve as the entity owning the Bima Sugam platform, the report said. Bima Sugam is poised to become a one-stop insurance platform that lists all life and general insurance policies. Experts predict that this platform could herald a monumental shift in the insurance sector, streamlining the way insurance products are accessed and compared. Once launched, Bima Sugam will empower users by providing comprehensive support for their personal and commercial insurance needs. The platform will play a pivotal role in identifying and comparing optimal insurance products, all while adhering to stipulated timelines. It will handle the sales, servicing, and claims processing for insurance policies. The platform will collaborate with aggregators like PolicyBazaar, brokers, banks, and insurance agents who will act as facilitators or bridges for individuals seeking to purchase insurance policies through the platform. This approach promises to simplify the insurance purchasing process and enhance accessibility for individuals seeking life, motor, or health insurance policies. Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go! 6 Sep, 2023 Source : CNBC TV18

Working with Health Insurers to Ensure 100% Cashless Claim Settlement Soon: IRDAI mumbai: Insurance sector regulator IRDAI on Wednesday said it is working on with health insurance providers to ensure 100 per cent cashless settlement of medical expense claims as soon as possible. Currently cashless claim process is tiresome and insurers deduct 10 per cent or more from the total billing in the name of consumables and other heads. Also, most hospitals don’t allow cashless admissions even though the insurance product offers such a facility, citing one or other excuses. Addressing the three-day global fintech festival here on the second day, IRDAI (Insurance Regulatory and Development Authority of India) chairman Debasish Panda said the regulator is working with health insurers and the national health authority and also the insurance council to roll out 100 per cent cashless claim settlements as soon as possible. However, he didn’t give any time frame. IRDAI is also working closely with the Insurance Council and the National Health Authority to onboard more hospitals onto the National Health Exchange for this, he said. Panda said the regulator is working with insurers to facilitate better and affordable pricing of health insurance for the elderly, which, he said, is an area of critical concern now as current pricing make mediclaim policies beyond the reach of most of the elderly. On the drive for ‘insurance for all’ by 2047 when the nation will be celebrating a century of independence, Panda said, “we should work for achieving the target much before the terminal date”. 6 Sep, 2023 Source : The Times Of India

As part of its Mission 2047 ‘Insurance for All’, IRDAI is planning to launch Bima Trinity – Bima Sugam, Bima Vistar, Bima Vaahaks – in collaboration with general and life insurance firms. IRDAI chairperson Debasish Panda The next 10 years are of utmost importance for the insurance sector, said the IRDAI chairperson Debasish Panda at the Global Fintech Fest 2023. “We’ll see a radical change in the nature of insurance buyers. As the level of awareness is on the rise, we will see more and more customised products. This means, we need more players, more distributors and more capital needs to be infused in the sector,” Panda said. Emphasising that technology will be the binding factor for Insurance 2.0, Panda said that a slew of reforms and initiatives in the insurance sector are now creating an environment that fosters innovation, promotes necessary ease of doing business, reduces compliance and facilitates avenues for growth. “Today, an insurance company can launch almost all types of insurance products without waiting for regulatory approval. It can even tie up with multiple distribution partners,” Panda said. As part of its Mission 2047 ‘Insurance for All’, IRDAI is planning to launch Bima Trinity – Bima Sugam, Bima Vistar, Bima Vaahaks – in collaboration with general and life insurance firms. Also Read: Bima Sugam: A platform that may transform the insurance business “The life insurance and general insurance councils which are the self-regulating industry bodies are also gearing up to support the industry in a more efficient way. They are also working towards enhancing customer experience, particularly in health insurance by bringing 100 percent cashless claim settlement,” Panda said. Currently, insurers deduct 10 per cent or more during claims. To facilitate more investments in the segment, Panda said that insurance companies’ boards now have more flexibility and autonomy for taking operational decisions independently, and various redundant prior approvals have been dispensed off. “The investment landscape is also being revamped to attract more investments in the sector. Be it in the increase in the limits for FDI, promoter status, or staggered lock-in requirements. Moreover, insurers can now invest in the funds of funds, alternate investment funds, debt instruments of INVITs and REITs, as so on and so forth,” he said. Earlier, an investment of over 10 percent in the paid-up capital of an insurer necessarily had to be made as a ‘promoter’. Under the 2022 regulations, the promoter threshold was raised from 10 percent to 25 per cent. 6 Sep, 2023 Source : money control

LONDON, Aug 2 (Reuters) – Britain said on Wednesday it would start work on setting up new rules specially designed to prevent a big insurance company collapse from crashing the financial system. Regulators have already introduced rules to deal with ailing banks after global financial crisis more than a decade ago left taxpayers picking up the bill. But no such specifically tailored regime currently exists in Britain to deal with failures in the country’s insurance industry, which is the fourth largest in the world. The UK finance ministry said in a response to a public consultation on introducing a regime for insurers that the Bank of England’s ability to deal with Silicon Valley Bank’s UK subsidiary this year showed how specific resolution rules could enhance UK financial stability. The European Union is in the process of approving its own set of rules for handling insurance company failures. In Britain, insurance company collapses currently come under modified UK company insolvency arrangements, which the finance ministry said may be less effective for an industry with 2.7 trillion pounds ($3.45 trillion) in assets. “The introduction of an insurer resolution regime would also ensure the UK remains at the forefront of international standards,” the government said, adding that UK branches of foreign insurers, including those from Gibraltar, should also come under the new rules. The ministry said it had considered whether the Lloyd’s of London insurance market should also come under the new regime but decided against it given the market already has to comply with winding up regulations specifically designed for it and there was a need to avoid duplication. Under the rules for dealing with failed banks, they are required to issue a special form of debt that can be written down to replenish burnt out capital as part of a resolution process. The ministry said it would not introduce a similar requirement for insurers. Shareholders in a failing insurer would be the first to absorb losses, ahead of unsecured creditors, to fund the “bail in” of an insurer, helping to keep taxpayers off the hook. Insurers deemed “systemically important” would be required to work with regulators on plans setting out what would happen in a collapse, the ministry said. The timing of the new regime is unclear given that legislation is needed and Britain is likely to face national elections next year. Britain is also finalising separate rules to ease capital requirements for insurers to encourage investment in the economy. 2 Aug, 2023 Source : REUTERS

The Directorate General of Foreign Trade (DGFT) on Thursday restricted import of certain laptops and computers under HSN 8471 with immediate effect. In its notification, the DGFT restricted import of laptops, tablets, all-in-one personal computers and ultra small form factor computers and servers. These electronics can be imported only against a valid license meant for restricted imports. However, it clarified that it does not bar imports under Baggage rules for the said items. India’s licensing requirement for imports of laptops, tablets and personal computers will ensure security of its citizens, a source familiar with the matter told Reuters on Thursday, adding the decision was in compliance with the World Trade Organization’s requirements. The government said the import licensing requirement is exempted for purchase of a single unit of laptop, tablet, all-in-one PCs or ultra small form factor computer, including in cases an unit is bought from online sites. However, such imports will attract taxes as applicable. You Might Also Like: Further, it also exempted licensing for imports up to 20 pieces each of these items per consignment, in cases where these are imported for certain purposes including research and development, testing, benchmarking and repair. Exemption of import licensing is also provided for the said electronics which serve as an essential part of Capital Good, the notification said. A Push for Local Manufacturing “However, our ecosystem isn’t ready yet for an assembly of this magnitude. Vendors ship in close to 2 million notebooks every quarter with around 3/4th out of this imported. Also, the almost entire volume of premium notebooks are imported,” Singh said. He added that the timing isn’t the best as the PC market has been struggling since the last 2-3 quarters and that the timing isn’t the best as the PC market has been struggling since the last 2-3 quarters and this will further dampen the market sentiment. Goldman Sachs said that the move could benefit Indian EMS (Electronics Manufacturing Services) companies as brands may import semi-knocked down (SKD) units/components and outsource assembly of these devices. “As India moves away from import of electronics to domestic manufacturing, we anticipate a paradigm shift in the growth of its home-grown EMS companies. Dixon is a major beneficiary of the “Make in India” push across products, as it is India’s largest EMS for electronics, lighting, mobile phones, security systems and washing machines,” it added. Anirudh Garg, Partner & Head of Research at Invasset PMS, noted that electronics have been a significant drain on India’s forex reserves. Therefore, the move will foster a conducive environment for domestic electronics and semiconductor manufacturing. “Companies like Netweb Technologies and Dixon Technologies stand to benefit from this policy, expanding their domestic market share and aligning themselves with India’s push to become a world leader in semiconductor manufacturing,” said Garg. In April-June, electronics imports, which include laptops, tablets and personal computers, was $19.7 billion, up 6.25% year-on-year. Electronics imports range between 7% to 10% of the country’s total merchandise imports. India has been trying to push local manufacturing by giving production-linked incentives in over two dozen sectors, including electronics. It has extended the deadline for companies to apply for its $2 billion manufacturing incentive scheme to attract big-ticket investments in IT hardware manufacturing, which covers products like laptops, tablets, personal computers and servers. The incentive scheme is key to India’s ambitions to become a powerhouse in the global electronics supply chain, with the country targeting annual production worth $300 billion by 2026. Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo and HP Inc are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China. The intent seems to be “import substitution of certain goods that are imported heavily,” said Madhavi Arora, economist at Emkay Global. Laptops, tablets and personal computers compose about 1.5% of the country’s total annual imports and nearly half of those are bought from China, according to government data. India has imposed high tariffs in the past on products like mobile phones to catalyze domestic output. 3 Aug, 2023 Source : The Economic Times

The Jan Vishwas (Amendment of Provisions) Bill, 2023 was passed in Lok Sabha on 27th June 2023 and Rajya Sabha on 2nd August 2023. The Bill was first introduced in Lok Sabha on 22nd December 2022. Subsequently, it was referred to the Joint Committee of the Parliament. The Jan Vishwas (Amendment of Provisions) Bill received overwhelming support and insightful suggestions from the Members of the Committee across parties. The Joint Committee on the Jan Vishwas (Amendment of Provisions) Bill, 2022 held detailed discussions with all the 19 Ministries/Departments along with Legislative Department and Department of Legal Affairs. The Committee conducted clause-by-clause examination of the Bill through a series of 9 sittings between 09.01.2023 and 17.02.2023. The Committee finally adopted its Report in its sitting held on 13.03.2023. The Report of the Committee was laid before Rajya Sabha and Lok Sabha on 17th March 2023 and 20th March 2023 respectively. The Committee recommended a few more amendments in the Bill. Committee also made 7 general recommendations which provide advice and guidance for future decriminalization efforts. One of the recommendations include constitution of a group consisting of legal professionals, industry bodies, members of bureaucracy and regulatory authorities, etc. to examine other acts and carry out exercise similar to the Jan Vishwas (Amendment of Provisions) Bill, 2023. Working group has been constituted as per the recommendation of the Committee. Through The Jan Vishwas (Amendment of Provisions) Bill, 2023, a total of 183 provisions are being proposed to be decriminalized in 42 Central Acts administered by 19 Ministries/Departments. Decriminalization is proposed to be achieved in the following manner: – (i) Both Imprisonment and/or Fine are proposed to be removed in some provisions. (ii) Imprisonment is proposed to be removed and fine retained in few provisions. (iii) Imprisonment is proposed to be removed and Fine enhanced in few provisions. (iv) Imprisonment and Fine are proposed to be converted to Penalty in some provisions. (v) Compounding of offences is proposed to be introduced in few provisions. For effective implementation of the above, the bill proposes measures such as (a) pragmatic revision of fines and penalties commensurate to the offence committed; (b) establishment of Adjudicating Officers; (c) establishment of Appellate Authorities; and (d) Periodic increase in quantum of fine and penalties It is also ensured that degree and nature of punishment is commensurate with the severity of the offence. The benefits of the Amendment Bill are outlined as under: 1. The Amendment Bill will contribute to rationalizing criminal provisions and ensuring that citizens, businesses and the government departments operate without fear of imprisonment for minor, technical or procedural defaults. 2. The nature of penal consequence of an offence committed should be commensurate with the seriousness of the offence. This bill establishes a balance between the severity of the offence/violation committed and the gravity of the prescribed punishment. The proposed amendments ensure the adherence to law by businesses and citizens, without losing the rigor of the law. 3. The criminal consequences prescribed for technical/procedural lapses and minor defaults, clog the justice delivery system and puts adjudication of serious offences on the back burner. Some of the amendments proposed in the Bill are to introduce suitable administrative adjudication mechanisms, wherever applicable and feasible. This would go a long way in reducing undue pressure on the justice system, reduce the pendency of cases and help in a more efficient and effective justice dispensation. 4. Decriminalization of provisions which affect citizens and certain categories of government employees will help them live without the fear of imprisonment for minor violations. 5. The enactment of this legislation would be a landmark in the journey of rationalizing laws, eliminating barriers and bolstering growth of businesses. This legislation would serve as a guiding principle for future amendments in various laws. Consolidated amendments in various laws with a common objective will save time and cost for both Government and Businesses alike. Ministry/Department-wise List of 42 Acts  (Covered under The Jan Vishwas (Amendment of Provisions) Bill, 2023) 2 Aug, 2023 Source : Ministry of Commerce & Industry

Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The aim of the study is to understand the financial habits and sentiments of the consumers in the low-income strata within the urban and semi-urban areas. Image Courtesy: Reuters. Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The company in its annual consumer survey ‘The Indian Wallet Study 2023’ found that with the economy growing, income levels have increased for 52 per cent of the low-income consumers last year. A total 76 per cent are expecting their incomes to rise in the coming year. This has made the low income population buoyant about the country’s economy. However, despite the increase in their income the consumers are highly cautious when it comes to non-essential spending, the study said. Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The aim of the study is to understand the financial habits and sentiments of the consumers in the low-income strata within the urban and semi-urban areas. Image Courtesy: Reuters. Home Credit India, which is a part of global consumer finance provider Home Credit Group, has said that sentiments of the low income population in urban and semi-urban spaces are quite buoyant about the country’s economy. The company in its annual consumer survey ‘The Indian Wallet Study 2023’ found that with the economy growing, income levels have increased for 52 per cent of the low-income consumers last year. A total 76 per cent are expecting their incomes to rise in the coming year. This has made the low income population buoyant about the country’s economy. However, despite the increase in their income the consumers are highly cautious when it comes to non-essential spending, the study said. Aug 9, 2023 Source : Zee Business

In a recent development, public figures like celebrities and influencers who portray themselves as “health experts or medical advisors” are now required to include “clear explanations” whenever they talk about health-related products. This change also extends to medical professionals and fitness experts who need to disclose their certifications when they endorse products or share health advice. The government’s “Additional Influencer Guidelines for Health and Wellness Celebrities, Influencers, and Virtual Influencers” have introduced these mandatory requirements. The Ministry of Consumer Affairs took this step after consulting with various parties, including health and Ayush ministries, as well as organizations like the Food Safety and Standards Authority of India (FSSAI) and Advertising Standards Council of India (ASCI). According to the new norms, celebrities and influencers portraying themselves as health experts or medical practitioners must “clearly separate their personal opinions from their professional guidance” and avoid making health claims without proper evidence. The guidelines emphasize that they need to include a statement indicating that their content is not a replacement for professional medical advice. The guidelines also suggest that during such promotions, endorsers should motivate their audience to consult health professionals before making any significant changes to their diet, exercise, or medication routines. These guidelines are now added to the existing ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements’, initially published by the Ministry of Consumer Affairs in June 2022. The disclosure or disclaimer, as stated, must be visible during endorsements, promotions, or whenever health-related statements are made. It’s important to note that these rules do not apply to general wellness and health advice that is not linked to specific products or services, and not targeted towards particular health issues or outcomes. For instance, advice like “stay hydrated by drinking water,” “engage in regular exercise,” “limit screen time,” and “use sunscreen to protect from UV rays” are exempt from these regulations. Aug 11, 2023 Source : The Economic Times

The DA hike will be effective from July 1, 2023. The central government is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by three percentage points to 45 per cent from the existing 42 per cent as per the agreed formula for the purpose. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The Labour Bureau is a wing of the Labour Ministry. Talking to PTI, All India Railwaymen Federation General Secretary Shiva Gopal Mishra said, “The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four percentage point hike in dearness allowance. But the dearness allowance hike works out to be a little over three percentage points. The government does not factor in hiking DA beyond the decimal point. Thus DA is likely to be increased by three percentage points to 45 per cent”. He further explained that the expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval. The DA hike will be effective from July 1, 2023. Presently, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance. The last revision in DA was done on March 24, 2023, and was effective from January 1, 2023. The Centre had increased DA by four percentage points to 42 per cent based on the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending December 2022. The DA is provided to employees and pensioners to compensate them for rising prices. The cost of living increases over a period of time and is reflected through CPI-IW. The allowance is revised periodically twice a year. Aug 6, 2023 Source : Hindustan Times