The recent updates in health insurance policies bring several benefits for policyholders, both existing and new ones. The Insurance Regulatory and Development Authority of India (IRDAI) has made three significant changes to the rules governing health insurance policies.
No Maximum Age Limit for Buying Policies
Previously, insurance companies were restricted to offering regular health coverage policies to individuals up to the age of 65. However, with the recent change, there is no maximum age limit for purchasing health insurance policies. This decision enables insurance companies to offer policies to senior citizens, catering to their specific needs. This change is expected to introduce more customized and innovative policies in the market.
Reduction in Waiting Period for Pre-existing Diseases (PED)
The waiting period for Pre-existing Diseases (PED) has been reduced from 4 years to 3 years. After this period, policyholders become eligible for coverage of pre-existing illnesses and their associated treatments.
Reduction in Moratorium Period
The moratorium period for health insurance policies has been reduced from 8 years to 5 years. Under the new rules, insurance companies cannot reject claims of policyholders based on non-disclosure and misrepresentation after 60 months of continuous coverage. However, companies reserve the right to reject claims in cases of fraud. Moreover, if critical information about conditions like hypertension, diabetes, asthma, etc., is disclosed later, insurance companies can cancel the policy citing non-disclosure.
These changes aim to provide more comprehensive coverage and flexibility to policyholders, ensuring better access to healthcare services and financial protection during medical emergencies. It’s essential for policyholders to be aware of these new rules when considering or renewing their health insurance policies.