Health Insurance Policies To Be Colour-Coded Based On Complexity

The Insurance Regulatory and Development Authority (IRDAI) is set to introduce a colour coding system for all individual health products to enable customers to gauge the complexity of the product.

In a draft released earlier this week, the insurance regulator said that every health insurance product offered by general and health insurance companies shall carry a colour code, which will indicate the level and extent of the complexity of the product.

The colours used will be "green, orange, and red" to indicate the complexity of the products that are on offer.

Green will indicate that the product on offer is simple, and easy to understand, orange will it is moderately complex while red will indicate that the product offered is complex when compared to both green and orange colour coded products.

"The colour code shall be indicated in the health insurance products disclosed on the websites of insurers so that the customers can make an informed choice while buying a health insurance product", IRDAI said.

The regulator has sought comments from stakeholders on the matter by 15 October.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of GoodReturns.in or Greynium Information Technologies Private Limited (together referred as “we”). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.