What are the New IRDAI Laws & How They Will Benefit Customers?

The year 2024 will be known as the year of reforms in the insurance industry. The Insurance Regulatory & Development Authority of India (IRDAI) has come up with some excellent updates and upgrades to the rules that are not only beneficial to the customers but will also boost the insurance sector in the country. So, what are the new rule changes?

1. No More Age Discrimination for Health Insurance: The previous age limit of 65 years is now completely gone. There is no mention of age, which can be interpreted as any citizen of any age can buy health insurance. To fulfill this, all insurers must develop policy products for the elderly. This will ensure that senior citizens have access to health insurance in an age when they need it the most. The IRDAI has also directed insurers to create customized policies for senior citizens and provide them with a dedicated channel just for their grievances and claims.
2. Wait Period for Pre-existing Diseases Reduced: Previously, a policy to cover pre-existing diseases was 4 years, but this period has now been reduced to 3 years. So, 3 years after the activation of the policy, the policyholder’s pre-existing disease will be covered. This significant reduction in the wait period will be beneficial to the policyholder.
3. Health Insurance Approvals within 1 Hour: The IRDAI has now decreed that all health insurance approvals are to be given within an hour. The long approval process has been one of the major deterrents for people investing in health insurance, but now, thanks to the new National Health Claims Exchange (NHCX) portal, this process will be done in just under an hour.
4. Health Insurance Claim Settlements in 3 hours: The IRDAI has also decreed that health insurance claim settlements are to be processed within 3 hours. If not done within the stipulated time, the insurer has to bear any additional charges levied by the hospital for the extra time. This speedy process will be enabled through the National Health Claims Exchange (NHCX) portal. Thanks to this, health insurance policyholders will now get faster discharge from hospitals.
5. No Limits on AYUSH Treatments: AYUSH stands for alternative medical treatments like Ayurveda, Yoga, Unani, Siddha, Homeopathy, and Naturopathy. Current health policies have sub-limits on such treatments. Policyholders could not claim the cost of treatment for these alternative treatments, but now, owing to the rule change by IRDAI, treatment costs can be claimed on the health policy. This allows policyholders to pursue alternative medical treatments.

Though there are other changes as well like a reduction in the moratorium period in health insurance, the end of indemnity-based policies, and the allowing of multiple claims with different insurers by a single policyholder, the ones mentioned above are the most impactful and will change the way the insurance sector has been functioning for the better.

To know more about how to take benefit of the changes in law and buy insurance for all family members. Get in touch with Money with Mansy. We are the experts in insurance in India and can guide you on the right insurance policies based on your needs and wants. Get in touch to know more!