Encourage healthcare and disaster cover, Finance Ministry tells insurers

The Finance Ministry on Tuesday asked general insurance firms to increase cashless facilities for health insurance users and standardise treatment costs in tandem with the Union Ministry of Health to expand medical care covers in the country. 

Devising a mechanism to cover Micro, Small and Medium Enterprises (MSMEs) also figured in parleys held by the Department of Financial Services Secretary Vivek Joshi with the General Insurance Council and the CEOs of private sector players in the national capital.  

Several critical issues to enhance risk protection in the country were discussed, including urging insurers to work with the Road Transport and Highways Ministry and State governments to ensure compliance with the Motor Vehicles’ Act’s provisions pertaining to insurance.  

Encourage natural disaster cover

Insurers were also nudged to rationalise distribution channels to increase the penetration of insurance and encourage adoption of property covers by people, especially to mitigate losses from natural catastrophes. 

The ministry also asked the insurance industry to consider linking the incidence of frauds to the credit scores of financial services consumers to prevent fresh frauds.