Government to Enable Value-Added Services in Insurance: In a significant move aimed at modernizing and broadening the scope of the insurance sector in India, the Ministry of Finance is expected to introduce a key amendment to the Insurance Act during the upcoming Monsoon Session of Parliament in July 2025. The amendment seeks to formally allow insurers to offer value-added services (VAS) alongside their core insurance offerings. These services would include wellness programs, preventive health check-ups, and teleconsultation services—positioning insurance products as more holistic and customer-centric solutions.
Currently, these services exist in a limited, unregulated format. Insurers often provide them separately from the core policy through partnerships with third-party providers. Because they are not integrated into the insurance contract itself, such services operate in a regulatory grey zone, making them optional, fragmented, and sometimes inconsistent. The proposed legislative amendment aims to bring clarity and legitimacy to these offerings by allowing them as services “incidental or related to insurance” directly under the law.
This reform is expected to have a transformational impact on the Indian insurance ecosystem, improving policyholder engagement, enabling preventive care, and strengthening customer loyalty. With the formal integration of VAS into policies, consumers could receive far more value for their premiums—not just in the event of illness or loss, but also through proactive health maintenance and real-time access to digital healthcare solutions.
Highlights of the Amendment
| Feature | Details |
|---|---|
| Legislative Change | Amendment to the Insurance Act (Monsoon Session, July 2025) |
| Services Allowed | Wellness programs, preventive check-ups, teleconsultation |
| Objective | Broaden insurance services and improve value delivery to policyholders |
| Current Status | Offered separately via third parties, not part of main insurance policy |
| Future Outlook | Full integration with core insurance services |
Who Can Apply for Value-Added Insurance Services?
These value-added services will be available to both individual and group policyholders. Insurers will have the flexibility to integrate these services within existing health, life, and general insurance products. Individuals who hold any type of valid insurance policy with participating companies will be eligible to receive these services, provided the insurance provider has opted into offering VAS under the new law.
It is anticipated that insurers may roll out these services selectively, based on the type of plan, coverage tier, or as part of premium packages. Group policyholders—such as those under corporate health plans—are also expected to benefit from tailored wellness offerings under employer-provided schemes.
Also read: Tamil Nadu Government Extends New Health Insurance: Scheme for Employees Till 2026
Insurance Fees for Value-Added Services
While the core insurance premium structure will remain unchanged for many, insurance companies may either include the cost of VAS in their premiums or offer them as optional add-ons. These services may be bundled into premium or top-tier plans, while basic plans may offer them as chargeable add-ons.
Fee structures could vary based on:
- Type of VAS (teleconsultation, health check-ups, etc.)
- Policyholder’s age and health history
- Duration and renewal terms of the insurance plan
Insurers will be required to clearly disclose pricing and benefits to avoid any ambiguity or hidden costs.
How to Use the Value-Added Services?
Once implemented and adopted by insurance providers, policyholders will be able to access these services in the following ways:
- Via insurer’s mobile app or website, with integrated access to teleconsultations and wellness tools
- Partnered healthcare centers for preventive check-ups and diagnostics
- Dedicated helplines or chatbots for appointment bookings and service requests
These services are expected to be offered in real-time or pre-scheduled formats, with digital integration playing a major role in ease of access and usability. IRDAI Official Website
Benefits of Value-Added Services for Policyholders
- Enhanced Wellness and Preventive Care: Services like regular check-ups and teleconsultations encourage healthy lifestyles and early detection of ailments.
- Lower Claim Ratios: Proactive health monitoring can help reduce severe health issues, indirectly lowering claim costs.
- Greater Customer Satisfaction: Added value can increase policyholder retention and satisfaction.
- Digital Convenience: Easy access through digital platforms makes insurance more interactive and personalized.
How to Apply for Insurance with Value-Added Services?
Steps to Apply:
- Visit your insurer’s official website or mobile app.
- Check the list of policies with integrated VAS options.
- Choose a plan and select the VAS services you need.
- Submit KYC details and complete the application process.
- Pay the premium and receive the policy certificate with VAS terms.
Insurance agents and brokers will also assist customers in understanding and selecting VAS-enhanced plans once the amendment is officially in effect.
Important Dates
| Event | Date |
|---|---|
| Monsoon Session of Parliament Begins | July 2025 (exact date TBD) |
| Expected Date of Amendment Passage | End of July 2025 |
| Implementation by Insurance Companies | Q3–Q4 2025 (phase-wise) |
| Launch of VAS-Integrated Products | From August–September 2025 |
Disclaimer
This article is intended for informational purposes only. The proposed amendment to the Insurance Act has not yet been passed and is subject to changes in Parliament. Insurance companies may implement value-added services differently, and users are advised to consult their insurer or visit official regulatory websites for accurate and updated information before making any decisions.
Government to Enable Value-Added Services in Insurance Conclusion
The Indian insurance sector is undergoing a quiet revolution, with value-added services poised to become a mainstream offering. The proposed amendment by the Ministry of Finance is more than just a policy tweak—it represents a fundamental shift in how insurance is viewed in India. No longer just a safety net for emergencies, insurance will evolve into a proactive wellness companion, empowering policyholders to take control of their health.
This legislative clarity will provide much-needed confidence to insurance companies, allowing them to innovate their product offerings without fear of regulatory backlash. Customers, on the other hand, stand to gain immensely from more holistic insurance solutions that address both risk and well-being.
As insurers start adopting these new provisions, customers should stay informed about the products that best align with their personal health needs and financial goals. Comparing VAS-enabled plans will be key to maximizing returns on insurance investments.
Ultimately, this policy move underscores India’s broader vision to integrate digital health, preventive care, and insurance into a seamless ecosystem, furthering the country’s goal of universal, affordable healthcare.
Government to Enable Value-Added Services in Insurance FAQs
1. What are value-added services (VAS) in insurance?
Value-added services in insurance refer to non-core services that enhance the customer experience beyond standard coverage. These include wellness programs, preventive check-ups, teleconsultations, and fitness-related tools that promote overall well-being. Under the proposed legislative changes, such services will be formally allowed as part of insurance policies.
2. Will I have to pay extra for value-added services?
That depends on your insurance provider and plan. Some insurers may include VAS in their premium packages, while others might offer them as optional add-ons for an additional fee. Insurers will be required to disclose all costs upfront, so you can make an informed decision.
3. When will these services be officially available?
If the amendment is passed in the Monsoon Session of July 2025, insurers could start rolling out VAS-integrated plans by August or September 2025. The rollout may be phased and could vary by provider.
4. Can I access value-added services through my existing insurance plan?
Not immediately. You will need to check with your insurance provider if they are offering VAS as part of your current plan or if you need to upgrade or renew to access these features. Insurers will likely offer new plans with VAS built-in.
5. Are value-added services available to all policyholders?
Yes, in principle, both individual and group policyholders can access these services. However, the availability will depend on the type of plan, insurance company, and whether the policy includes value-added features as part of its structure.
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