The Insurance Regulatory and Development Authority (IRDA) is planning to reduce the minimum share capital for health insurance companies from Rs 100 crore (as in the case of life and non-life companies) to Rs 50 crore as there looks to be no takers for this segment in sight.
The IRDA is proposing to come out with separate regulations on the health insurance front, as is the case in most countries. Till now, health had been clubbed with non-life insurance players. The Insurance Act does not recognise health insurance as a separate line of business since the Act pertains to 1938 norms.
Though health insurance products will shortly be introduced by private non-life insurance companies in accordance with the IRDA regulations, the new players are planning to tap only corporate clients leaving out the general public at the initial stage.
Global health insurance majors