The IRDA has directed that health insurance companies may change existing health insurance plans with certain conditions.
The Insurance Regulatory and Development Authority of India (IRDAI) has instructed the companies providing health insurance that no change should be made in the health insurance premium of existing health policies. Also, if any change is to be made, it should be according to the Consolidated Guidelines on Product Filing in Health Insurance Business released in July 2020.
In the existing policy, the approval of the insured will have to be taken for new benefits
IRDA has stated in clear terms that in existing health insurance schemes, new benefits can be offered as add-on covers or as optional covers. For this, the approval of the policyholder is required. The insurance regulator has asked Applied Actuaries to review the financial viability of each health insurance product at the end of a financial year. This review report will be assigned to the board of the insurance company. Apart from this, the board will also have to submit details of good and bad experiences related to each product. Along with this, suggestions will also have to be made on the necessary reforms to improve the product in the interest of policy holders. this
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These status reports related to health insurance will have to be submitted to the authority by September 30 of every financial year with information about the board’s suggestions and steps to be taken for improvement. The status report for the financial year 2020-21 will be submitted by 20 September 2021. The insurance regulator has instructed companies to use easy words in the policy so that buyers can understand it easily. From October 1 this year, all insurers have been instructed to adopt the standard format of policy contracts with a clear title. According to the regulator, the contract will include policy schedule, introduction, definition, benefits, exclusions, general terms and provisions.