IRDA PUTS OIC ON NOTICE OVER AGEISM IN POLICY ISSUANCE

India’s Insurance & Regulatory Development Authority (IRDA) has asked state-owned Oriental insurance Co (OIC) to stop its strategy of discouraging the sale of medical insurance to clients over the age of 45 through the use of varying levels of commission ( ID Asia , August 24). However, it has cleared OIC’s new medical insurance policy, which has differential pricing according to age. The new policy, scheduled for launch on September 15, offers a discount to young people and has a loading added on for the elderly. OIC submitted the policy for IRDA’s approval in February, but the regulator’s slowness in dealing with the application led to OIC taking matters into its own hands. On July 7 OIC adopted the strategy of reducing its incentives to agents for policies sold to people aged 45 and over. The commission paid on sales to customers aged 55 and over was reduced from 10% to zero. OIC general manager Yogesh Lohia said that “now that the policy has been cleared, we will revive agent commissions”.