Insurance Regulatory Authority of India said on Tuesday that mediclaim policy holders, who are not satisfied with the services, will soon be able to switch service providers at the same premium.
The same would also be true for motor insurance policy holders.
"It is high time that the insurance industry also moves to offer portability so that the mediclaim and motor insurance policy holders can switch their service provider. . .We have initiated a debate on the idea of portability and we would be arriving at a conclusion very soon," IRDA chairman J Hari Narayan said at Confederation of Indian Industry insurance summit.
To a question on whether this portability concept would apply to ULIPs also, he said: "Yes and no. Yes in the sense that there has to be a balance in the churn of ULIP's policy and their portfolio has to be evenly managed."
Narayan, however, added that portability cannot be randomly applied and the portfolio of an insurance company has to be balanced.
To a question on the status of Reliance General Insurance acquiring a south-based insurance company, he said: "We have certain issues which we are trying to resolve through discussions."
The IRDA chief added that work is progressing on formulating merger and acquisition norms for the sector.
"Mergers and acquisition norms would be announced soon. A committee is studying the issue," Narayan said.
