Three new guidelines have been issued by The Insurance Regulatory and Development Authority of India (IRDA) in June 2020 for the insurers who are offering health insurance. Though health insurance was friendly but these guidelines have made the health insurance to be more consumer friendlier. As per these guidelines, the insurance companies are required to make 3 changes in their functioning and policies and these changes are as:
- 1. Important product clauses of the policies should be standardized so that the customers can comprehend them easily and can make comparisons of products of various insurers.
- 2. In today’s time of physical distancing, the insurance coverage of telemedicine should be ensured.
- 3. It is necessary to provide more customer-friendly and rational claim deductions.
These clauses are to be incorporated by insurers on or after October 1, 2020, for new products filed by the insurers. These clauses are also to be incorporated for existing products due for renewal from April 1, 2021. Insurers have to use the prescribed standard wordings given by the IRDA. Additional terms are allowed to be used for providing appropriate information to the insurers.
The standard clauses and terms possess varied important items in the policy documentation, like material facts which are necessary to be disclosed at the time of issuance of the policy. These also mention the conditions and terms required to be met by the insured for settling the claim. These also talk about other helpful items like policy cancellation, porting, migration, and redressal of grievances. Undoubtedly, this simplification and standardization are going to benefit the customer as the customer will be easily able to comprehend the entire policy.
Tags: Info Desires, Health insurance, IRDA Guidelines for Insurance, Health insurance Conditions
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