IRDA Proposes Amendments in Health Insurance

Health Insurance Amendments by IRDAI

In the amendment draft issued on February 16, 2022, the IRDAI has proposed lifelong renewals under personal accident cover if the policy was previously renewed without any breaks. With this amendment, health insurance companies will be unable to deny lifetime renewals to personal accident policyholders due to an increase in their age.

The insurance regulator has also proposed a discount on renewal premiums if the risk profile of a policyholder is low. At present, insurance companies offer loading on health insurance premiums that could be removed once the risk lowers.

Further, the amendment also proposes revision in the health insurance portability. It proposes a fixed time of five working days for insurance companies to obtain all essential details on the medical history and claim history of a policyholder from the existing insurance provider. This amendment will ensure that no insurance company rejects any claims in future related to an already made claim on the grounds of non-disclosure after portability. It is also expected to prevent the refusal of porting of a policy by insurance companies.

The IRDAI has also proposed revision in the cashless facility clause so that the onus of ensuring the cashless facility is shifted by the insurer. However, no specific guidelines have been mentioned to do so.

Besides, IRDAI has also proposed other amendments relating to the operations of a health insurance company.