Big relief to senior citizens IRDAI rescinds age limits on health insurance
Big relief to senior citizens
IRDAI rescinds age limits on health insurance
The move by the Insurance Regulatory and Development Authority of India to give relief to senior citizens by doing away with the age cap on buying health insurance policies, effective from April 1, 2024 is commendable.
Earlier, there were restrictions on individuals in purchasing new insurance policies until the age of 65.
However, following the recent changes that have come into effect from April 01, 2024, anyone, notwithstanding age, is eligible to purchase a new health insurance.
According to a notification issued by IRDAI, “Insurers shall ensure they offer health insurance products to cater to all age groups. Insurers may design products specifically for senior citizens, students, children, maternity, and any other group as specified by the Competent Authority”
The move by the insurance regulatory body aims to create a more inclusive healthcare ecosystem in India and to encourage insurance provider companies to diversify their product offerings.
IRDAI has also instructed health insurance providers to introduce tailored policies for specific demographics, such as senior citizens, and establish dedicated channels for handling their claims and grievances.
As per an industry expert, it’s a welcome change since it now opens Avenue for people above 65 to seek health cover. Insurers based on their Board approved Underwriting guidelines can cover people above 65. The coverage is subject to offer and acceptance between the Insured and Insurer based on affordability for the senior citizens and viability for Insurers.” said an industry expert.
After the recent notification, the insurers are now also prohibited from refusing to issue policies to individuals with severe medical conditions like cancer, heart or renal failure, and AIDS.
The notification reveals that IRDAI has abbreviated.the health insurance waiting period from 48 months to 36 months. According to the insurance regulator, all pre-existing conditions should be covered after 36 months, regardless of whether the policyholder disclosed them initially or not.
To put it simply, health insurers are interdicted from rejecting claims based on pre-existing conditions after these 36 months.
The insurance companies are outlawed from introducing indemnity-based health policies, which compensate for hospital expenses.
Instead, they are only allowed to provide benefit-based policies, offering fixed costs upon the occurrence of a covered disease.
News Edit K.V.Raman
