Credit linked health insurance: IRDAI may tweak and not ban sale

The Insurance Regulatory and Development Authority of India (IRDAI) may tweak and not ban the sale of credit linked health insurance products, according to sources.

Credit linked health insurance products are often used as collateral by housing finance companies, NBFCs against housing loans or vehicle loans which they provide.

CNBC-TV18 has learnt that was that there was some resistance on the ban which came from general insurance council and therefore, IRDAI now is not in favour of banning the credit-linked health insurance products entirely but it’s looking at making a tweak in terms of how these products are sold into the market.

Meanwhile, Prayesh Jain of Yes Securities said, “A tweak is relatively better compared to a complete ban and this tweak could mean that the impact could be much lower.”

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