Insurance Regulatory and Development Authority of India (Irdai) on Monday came out with the exposure draft on color coding of individual products of health insurance business. This move will enable policyholder to understand the level of complexity while buying the health insurance products.
The insurance regulator stated that to make product choice easier to the customer it is considered important to introduce the system of color coding in respect of all the individual products under the category of health insurance business. The color codes that can be allotted are green, orange and red.
According to the exposure draft, color code green shall signify that the product offered is a simple product, easy to understand and comprehend. Orange color shall signify that the product offered is moderately complex. While the color code red