Health Insurance Policy: IRDAI has made it clear that it will be mandatory for any insurance company to take approval from the regulator before discontinuing any individual health insurance product. This has been done so that policyholders do not have to suddenly be deprived of any plan.
Health insurance will now be more affordable for senior citizens. The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance companies that they will not be able to increase the health insurance premium by more than 10% annually for people aged 60 years or above.
If in any situation the premium has to be increased by more than 10%, then the insurance companies will have to take permission from IRDAI.
Ban on arbitrary increase in insurance premium
IRDAI took this decision because in recent years some insurance companies suddenly increased the health insurance premium of senior citizens. Due to this, older people were facing a lot of difficulties in getting insurance or renewing it (Insurance Policy Renewal). Now under this new rule, companies will not be able to increase the premium by more than 10% without proper reason and permission.
Permission will have to be taken before withdrawing the insurance product
IRDAI has also made it clear that it will be mandatory for any insurance company to take approval from the regulator before discontinuing any individual health insurance product. This has been done so that policyholders do not have to be deprived of any plan suddenly and they continue to have insurance cover.
Instructions to decide the list and package of hospitals
IRDAI has also instructed insurance companies to take steps to list hospitals. Apart from this, insurance companies will also have to negotiate to decide health packages on the lines of Pradhan Mantri Jan Arogya Yojana (PMJAY). This will provide uniform and transparent treatment to the policyholders.
Effect of new rules
This new decision will provide relief to senior citizens and they will be able to continue their health policy without much financial burden. Also, insurance companies will now have to consult the regulator before increasing the premium and withdrawing the policy, which will protect the interests of the customers.