By Priyanka Sambhav
The Insurance Regulatory and Development Authority of India (IRDAI) has made many changes to health insurance policies to ensure that consumers are encouraged to buy health insurance. To begin with, IRDAI has paved the way for standardizing health and even life insurance policies so that complicated product features, rules and conditions do not dissuade people away from insurance.
Here are five pro-policyholder changes :
1.Corona specific Policy- Portability & Migration
In the pandemic situation, the Insurance regulator directed health insurance companies to bring Coronavirus specific short-term policies. We saw the launch of two policies in July 2020- Corona Kavach and Corona Rakshak which received a good response as well. The Insurance regulator standardized the feature and rules of the product too. Hence, all the policies despite being offered by different companies were on the same principles. Corona Rakshak is fixed benefit policy, and Corona Kavach is an indemnity based policy which has a term of 3½ months, 6½ months and 9½ months. Now the Insurance regulator has allowed further renewal of these policies for the further term. On renewal, the coverage will continue seamlessly without any imposition of 15 days waiting period. At the same time portability of policy to any other companies, COVID policies have been permitted by the regulator. And if the insurer wants to migrate to some other indemnity based healthy plan that is also allowed. Whether you migrate or port, there will be no additional 15-day waiting period.
2.Telemedicine
Corona has pushed us all to online communication. Doctor consultations are no different. The Insurance Regulator has asked health insurance companies to cover the cost of telemedicine if doctor consultation is part of their health plans. Telemedicine will include medical consultation done through mobile phones, video calls, online chats etc.
3.Enabling Premium payment in instalment
Considering the hard financial times that all of us are facing, IRDAI has allowed companies to take premium in instalments. Instead of one go payment of lump-sum if one can break it up in half-yearly, quarterly or monthly payments. Of course, this will be companies’ prerogative if they offer the instalment facility to its customers or not.
4.New set of rules for insurance advertising
IRDAI wants that insurance advertisements should not miss-sell themselves. The Insurance Regulator in its draft guidelines has clearly worded that advertisement making tall claims which do not match the benefit offered by the policy will be treated misleading and unfair. The draft said that their advertisements confine to certain parameters- and ensure that communications is clear and fair. Not misleading in any way, and they should use material and design to present information legibly and in an accessible manner.
5. Moratorium Period
The regulator has tried its best to win consumers confidence and has made a significant change. Insurance companies can’t reject a claim of a policyholder who has paid the premium for eight straight years. This period of 8 years is called a moratorium period. A claim can’t be rejected from the 9th policy year unless proven fraud or in case of some permanent exclusion.
