From October, your health insurance policies will get a much-required revamp and they will be re-introduced in accordance with the guidelines as well as specifications generated by the Insurance Regulatory and Development Authority of India (IRDAI). The revamped policies will come into highlight from 1st of October, 2020 and the new changes will be there on all new and already available health insurance policies. For customers, the revised policies will mean cover for more illnesses as well as methods at cost-effective prices. The new guidelines were generated to insurers in a staggered way over the last year to make health insurance policies more customer-centric and standardized. Take a closer look at the expected changes in existing policies.
The health insurance premium is a function of the sum insured and age, followed by healthy habits and health maintenance. The guidelines to reward policyholders with a continued renewals, as well as early entry, were already there in the IRDAI guidelines of 2013. To incentivize healthy lives, the current guidelines stress giving policyholders the terms of wellness habits and preventive by disclosing upfront like mechanism or say incentives in the prospectus.
No discount, however, will be offered on any third-party service or merchandise. For example, insurers can not deliver discounts on a health club's membership just because they have a tie-up with the club. In spite, discounts on pharmaceuticals or in a premium or diagnostic or consultation services of providers in the network will still be allowed.
Cover for New Ailments
The regulatory body has published a list of guidelines that show the different illnesses that will now be covered under a regular health insurance cover. In the future, insurers will be barred from deducting illnesses contracted due to hazardous activity. Additionally, treatment for age-related degeneration, mental illness, artificial life maintenance and internal congenital diseases will be covered if you buy health insurance online. A few other basic illnesses for which cover will be delivered under your insurance plan involve, neurodevelopment and behavior disorders, disorders and genetic diseases, and cover for puberty as well as menopause-related disorder.
Insurers Have Been Asked To Launch Pilot Products
This new initiative may usher in an effective wave in the insurance industry. IRDAI has permitted insurers to test the water by launching pilot products. Close-ended with a total of the one-year policy term, the products will be delivered only by general or health insurers for about five years initially. The product can be withdrawn or say rolled over into a regular one. The idea behind this is to cover risks that have not been covered by insurers to date. Such an experiment, however, should not be harmful to the interests of policyholders. While the insurers have perfect flexibility to withdraw or continue the product after 5 years, the regulatory has covered the interest of customers by putting an obligation on the insurance agencies to port the customers of pilot policies to the available product of a health insurer. This will deliver customers continuity advantage and at the same time initiate insurers to innovate more and test new products.