India’s Leading BFSI and FinTech Companies 2021

46 Key Regulatory Developments Regulatory Initiatives During COVID-19 Pandemic ƒ ƒ Push for expedition in processing of claims relating to COVID-19; no repudiation without thorough review. ƒ ƒ Providing insurance coverage and continuity benefits during grace period, provided renewal premium was paid on or before May 15, 2020. ƒ ƒ Premiums to be collected in instalments at the option of insurers ƒ ƒ Introduction of indemnity-based health insurance products covering the treatment and hospitalization cost for COVID -19. ƒ ƒ To expedite settlement of claims, turnaround time (TAT) of two hours fixed for granting both cashless pre- authorization and for final discharge of the insured patient. ƒ ƒ All insurers allowed to offer COVID-19 specific short term (fromminimum tenure of 3-11months) health insurance policies until March 31, 2021. Other Key Regulatory Measures ƒ ƒ The Union Budget for 2021-22 proposed to increase the permissible FDI amount for insurance sector from 49% to 74%. Other proposals under Union Budget were:- o Privatisation of one General Insurance Company in 2021-22 o IPO of LIC in 2021-22 o Tax exemption for maturity proceeds of ULIPs having annual premium up to ` 0.25 mn. ƒ ƒ In December 2020, as a one-time measure, IRDAI permitted insurers to change the base premium upto +/- 5% of originally approved premium rates. Dun & Bradstreet