The move is aimed at identifying premium for each risk and allowing life insurance companies to underwrite only life risk while health insurance providers will underwrite only the risk of the health portion of the combined products.

The insurance regulator has prepared a detailed proposal, which has been circulated among chief executives of all insurance companies seeking their views. The companies have to submit their views before June 29. Suggesting the name of products as `health plus life combi products', Irda said, "In the proposed combi product, it is expected that the premium components of both risks are separately identifiable."

"It is proposed to restrict the policy term to at least three years and cap the maximum sum assured at Rs 3 lakh (Rs 300,000 ) in these classes of products. The sum assured limit of Rs 3 lakh is to be reckoned separately for pure term life insurance and health insurance portion," Irda said.