IRDAI proposes setting up new platform for sale of insurance policies

Insurance Regulatory and Development Authority of India (IRDAI) has proposed setting up a new platform for sale, servicing and claims of insurance policies, sources informed CNBC-TV18. 

The same will be available from December this year.

"All products from life, general and standalone health insurers to be listed on IRDAI’s proposed platform," they said.

In order to sell policies, agents will have to become platform members. They can sell it from all insurance companies once they become members.

IRDAI believes that insurance platform will help insurance penetration in Tier 2, 3 areas and will also bring down existing commission rates.

Earlier, sources said that the IRDAI committee is likely to propose allowing life insurers to sell health insurance. The committee is likely to seek a nod for the distribution and manufacture of health insurance.

The committee cited improved penetration, and global practice to support the move.

Presently, life insurers sell only fixed benefit health plans and not indemnity products. As per IRDAI, 75 percent of people pay for medical expenses from their pockets.