Context:
The Insurance Regulatory and Development Authority of India (IRDAI) has removed an age limit for purchasing Health Insurance Policies.
More on the news
- Previously, insurance policies could only be purchased until the age of 65, but with the recent amendment, effective from April 1, there is no age restriction for purchasing a new health insurance policy.
- This IRDAI abolition aims to create a more inclusive and accessible healthcare ecosystem, ensuring adequate protection against unforeseen medical expenses.
- Age Limit Removal: Individuals of any age can now purchase new health insurance policies.
- Inclusivity: Departure from conventional constraints to ensure accessibility and inclusivity in healthcare coverage.
- Product Design: Insurers are mandated to offer products for all age groups, including senior citizens, students, children, maternity, and any other group as specified by the Competent Authority.
- Pre-existing Conditions: Insurers must offer policies to individuals with severe medical conditions like cancer, heart or renal failure, and AIDS.
- Premium Payment Flexibility: Insurers are permitted to offer premium payment in instalments for policyholders’ convenience.
The Insurance Regulatory and Development Authority of India (IRDAI)
- It is a statutory body established in 1999 to regulate and promote the insurance and reinsurance industries in India.
- It functions under the jurisdiction of the Ministry of Finance, Government of India.
- Key functions include licensing insurers, setting product standards, and resolving disputes.
Additional Provisions
- Travel Policies: Only offered by general and health insurers.
- AYUSH Treatment Coverage: No limit on coverage for treatments under Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy.
- Multiple Claims: Policyholders with benefit-based policies can file multiple claims with various insurers.
Implications
- Specialized Handling for Senior Citizens: The Proposed regulation aims to address complaints and claims of senior citizens through a specialized channel, ensuring tailored and responsive assistance.
- Market Dynamics: Removal of age restriction likely to expand the health insurance market, attracting individuals of all ages.
- Financial Protection: Enhanced coverage for individuals with pre-existing conditions, ensuring financial security against medical expenses.
- Consumer Convenience: Premium payment flexibility and multiple claim options enhance consumer convenience and satisfaction.
- Regulatory Framework: IRDAI’s proactive measures align with the goal of ensuring comprehensive and accessible healthcare coverage for all segments of society.
- This may lead to better access to healthcare and reduced burden of medical expenditure for those in the age bracket.