It seems IRDA isn’t in any mood to change their proposed guidelines on ULIPs (unit-linked insurance products) to be effective from September. However, the industry has been voicing concern over the likely squeeze on profit margins.

IRDA has considered all that [the proposed ULIP guidelines] and they do not see any need for vary from the regulations already there.

Hari Narayan, Chairman, IRDA, dismissing the industry's misgivings on this count, said: “I do not think that the performance would be significantly impacted in this fiscal or next fiscal. The insurance companies require to get back to a much reasonable expense pattern for sustainability. We do not want to spin the industry to a high-cost sector.”

His remarks came a day after the Delhi High Court asked the insurance regulator to sort out the cashless facility to policyholders in major hospitals across the country. The IRDA chairman said there was nothing the insurance regulator could do about it.

“Now that HC has given direction, we will follow that,” he said.

Even, he went a step further and said in light of the present controversy if the insurance companies decide to revise their premium for treatment at these five-star hospitals, the regulator could not stop it.

The 18 insurers took this extreme step as they annually bled to the extent of Rs 1,500 crore more than what they collected as the premium from the mediclaim policies while settling claims of hospitals across the country.