The Insurance Regulatory and Development Authority (IRDAI) is set to introduce a colour coding system for all individual health products to enable customers to gauge the complexity of the product.
In a draft released earlier this week, the insurance regulator said that every health insurance product offered by general and health insurance companies shall carry a colour code, which will indicate the level and extent of the complexity of the product.
The colours used will be "green, orange, and red" to indicate the complexity of the products that are on offer.
Green will indicate that the product on offer is simple, and easy to understand, orange will it is moderately complex while red will indicate that the product offered is complex when compared to both green and orange colour coded products.
"The colour code shall be indicated in the health insurance products disclosed on the websites of insurers so that the customers can make an informed choice while buying a health insurance product", IRDAI said.
The regulator has sought comments from stakeholders on the matter by 15 October.