The term of a loan-linked health insurance policy that repays the outstanding amount if the insured is taken ill and is unable to service the loan, has been increased to five years. Health insurance companies can now offer pilot products for a maximum period of five years. If the product is feasible, it will become a regular health insurance product.
Life insurance companies will no longer be able to offer pure indemnity products (mediclaim policies) however, they can continue to offer defined benefit products (critical illness plans).
Insurance agents will not earn commission if health insurance portability is opted for. However, they will continue to earn commission when the same insurance policy is renewed on a regular basis.