Monthly premium, more illness to be covered: Changes in health insurance policy1 min read . Updated: 04 Oct 2019, 03:52 PM IST
- IRDAI is trying to make insurance policies more standardised
- Now one can pay health insurance premium in installments
The Insurance Regulatory and Development Authority of India (IRDAI) has recently announced that customers can now pay their health insurance premium in various installments — monthly, quarterly or half yearly. Earlier, health insurance companies used to collect home insurance premium on an annual basis.
With a number of changes, IRDAI is now trying to make insurance policies more standardised and customer-friendly. Here are the few recent changes in health policies:
1) In a circular issued last month, the regulator has allowed insurers to increase the maximum age limit filed for insurance policies. Usually, the maximum age limit of health insurance policies filed is up to 65 years. The insurer needs to inform the regulator on a certification basis about the change, said IRDAI.
2) Now one can pay health insurance in installments. IRDAI has allowed health insurers to collect insurance in monthly, quarterly or half-yearly basis. Terms and conditions of the insurance shall remain unchanged.
3) Health insurers are allowed to introduce additional distribution channels for particular products. The insurance companies do not have to wait for regulator's approval. They can make minor modifications in approved individual insurance products on a certification basis.
4) Health insurance companies can increase or decrease premiums by 15%, caused due to the modifications, based on the loss-ratio numbers said Irdai. IRDAI said change of premium rates resulting in the increase should be only after expiry of three years from the date of launch of approved or modified individual product. "Change of premium rates resulting in the increase shall be only after expiry of three years from the date of launch of approved or modified individual product," said IRDAI.
5) The aim is to make a standardized health insurance policy with a focus on customers. Insurers should try to extend health insurance coverage to all the persons to be insured who disclosed pre-existing disease, said IRDAI.