One of the key recommendations of the panel set up by the Insurance Regulatory and Development Authority (IRDA) to look at viable health insurance schemes for senior citizens is that insurance companies should not have the right to deny any senior citizen a health cover.

Currently, general insurance firms cut an agents' commission on sale or renewal of health policies for those above 55, effectively denying this group health cover.

The committee is also looking at ways to tackle the issue of portability of policies. Currently, if a person wants to switch to another insurance company, he/she loses all the benefits accumulated over a period of time. For instance, the time limit for a pre-existing disease again starts from the day the person purchases a new policy with another insurer.

The committee is likely to recommend that senior citizens be allowed portability without any penalty. So, if a customer wishes to change his/her insurance company, the accumulated benefits will continue.

The reason for the lower age limit definition, sources said, was that people who normally think of buying insurance as they grow older will be encouraged to buy it at a slightly earlier stage when their health issues are not already compounded.

The committee will, however, also have to look at recommending to the government that the age under the tax exemption limit be altered, or that a caveat be added for medical insurance.