The Insurance Regulatory and Development Authority of India (IRDAI), recently requested insurers to standardize the exclusions in an endeavor to remove ambiguities. These include the diseases or medical conditions that are not covered under a health insurance policy.
The health insurance policies acquired an all-important rework, owing to the standardized norms being put into place. Also, since these norms were brought into effect again in accordance with the guidelines and specifications that was issued by the regulator.
The revamped policies came into effect from 1st of this month. These new changes are not only
applicable on all existing insurance policies but they are also applicable on the new health insurance policies as well. The standardized norms have made it much easier for buyers to choose a health insurance plan now as the revised policies offer insurance cover for more illness and procedures at reasonable prices for customers.
IRDAI stated that, according to the standardized norms, the health insurance claim of the policy holder cannot be rejected if the policy has completed 8 years which means the policy holder has been paying a premium for 8 years continuously, except for in a situation of proven fraud and permanent exclusions.
Now, this means the customer’s health insurance claim will not be rejected from the ninth policy year unless they have indulged in fraud or are making a claim for a permanent exclusion. The inclusion of this moratorium clause encourages consumers stay invested for longer period of time and take the maximum benefits of the health insurance policy.
As per Naval Goel, Chief Executive Officer & Founder of PolicyX.com, “Standardization of health insurance is a great move by IRDAI. It will make things easier for customers and will provide clarity on what the health insurance company is covering under the chosen plan. With this in mind, it will be easier for customers to compare and get the most suited plan for themselves. Moreover, with this move, IRDAI wants to bring uniformity and transparency in health insurance.”
