The Insurance Regulatory and Development Authority (IRDAI) has recently taken several important decisions for the convenience and well-being of policyholders, including life, health, and general insurance.
The new health insurance rules have come into effect from April 1, 2024. Earlier, insurance companies were given time till September 30 to implement these rules. Now, under the new procedures, insurance companies will have to approve the request for cashless claim within one hour. After discharge from the hospital, the final authorization will also have to be approved within three hours.
What will be the impact of the new rules on the policyholders?
1. Premium hike:
The implementation of the new rules has led to an increase of 10 to 15 percent in health insurance premiums. Insurance companies have increased their premiums this year. According to Anand Roy, MD and CEO of Star Health Insurance, IRDAI has clarified the policy coverage and waiting period, which may cost the policyholders a little more, but the process will be more simple.
2. Change in moratorium period:
Earlier the moratorium period for claims on health policy was 8 years, which has now been reduced to 5 years. Now, if the policy remains active for five years, insurance companies will not be able to reject the claim on the basis of non-disclosure or incorrect information, unless there is fraud.
3. Discount on premium on non-claim:
If the policyholder does not make any claim in a year, the companies used to increase the sum insured without additional premium. As per the new rules, policyholders will get the option of increasing the sum insured or discount on premium. This will provide relief to policyholders troubled by the increase in premium.
These new rules of IRDAI will make health insurance policy more transparent and customer-centric, which will benefit policyholders in the long term.
