Insurance Regulatory and Development Authority releases new draft guidelines

Insurance Regulatory and Development Authority releases new draft guidelines

The insurance regulator released the draft guidelines by which it asked insurers to provide health policy to people up to 65 years of age.

So far, insurers could deny cover to people over 60 as it was not mandatory. The move is likely to benefit India’s senior citizens who have to incur huge medical bills because of the stringent health insurance rules.

Besides, it has also proposed special provisions for senior citizens whose need for health care is pressing. Under the proposed norms, insurer will have to provide customers all relevant information to customers in a simple language in single page.

Secondly, IRDA said there should not be an exit age for renewal, which earlier varied between 75 and 80 years. A DNA report says a lifetime renew ability of health insurance product may also be possible.

“With some companies setting the renewability age to just 50-55 years on the basis of your past records, this will be a big breather. Also policies will become hassle-free if premiums are regularly paid.

It also said life insurers shall offer products with policy term of at least 4 years and non-life insurers shall offer products for not more than 3 years.

Non-life insurers issuing policies will have to reimburse the policyholder 50 percent of the medical examination cost prior to providing a cover. If the policy is issued by a life insurer, it will have to bear the entire cost of the check-up.

The draft also talks about portability, under which a policy holder can migrate to another health insurance providing company, without losing any benefit.

Highlights of the IRDA guidelines:

• Life Insurers to offer Products with policy term of 4 years

• Non-life to offer products for 3 years

• Health insurance policies to allow treatment across pan-India

• Travel insurance can be offered as standalone product

• Policy holders to have option to migrate to a suitable health insurance policy

• Special provisions for insured senior citizens

• Life & non-life cos can launch ‘Combi Products’

• Claim can be settled within 30 days