Chennai, Jul 21 (IANS): The Insurance Regulatory and Development Authority of India's (IRDAI) move to allow insurers to empanel health care service providers/hospitals, as per the standards set by their boards, is a welcome move for offering cashless facility, industry officials said.

"This announcement by the IRDAI is a significant development that liberates the health insurance providers to broaden their spectrum of healthcare network, thus enabling the dual benefit of deeper insurance penetration besides encouraging seamlessness in customer experience," Sanjay Datta, Chief, Underwriting, Claims & Reinsurance, ICICI Lombard General Insurance Company Ltd, said.

According to him, the IRDAI's move is directed towards ensuring optimum outreach, which, in turn, would develop the industry.

"While specifying the criteria, the board of insurers shall, amongst others, consider especially the minimum manpower and healthcare infrastructure facilities," the IRDAI had said.

The cashless facility for health insurance policy holders in small cities and towns is expected to have a positive impact on the sales of health policies, said an industry official.