Age should not be a constrain to take health insurance policy for medical benefits. Insurance Regulatory Development Authority (IRDA) has recently stepped in to bring out life insurance policies in a profitable way and is coming out with new structures & changes. Earlier, it has made intensive changes like increasing the coverage in u-lip policies, increasing the surrender values, banning the maximum NAV schemes, minimum guarantee in the matured amount of pension policies and so on. This was applauded by the public and beneficiaries extensively.
Health Insurance Policy Regulations
Now, IRDA has turned its focus on the important sector of the general insurance – “health insurance”. When IRDA has thought to bring out something, it has come out newly drafted terms and conditions in the name of (health insurance) rules and regulations 2012’.
These rules and regulations will be available to the public very soon with little changes in to it which is good news. What are all the important points that this new draft of rules and regulations have got?
- Plans should be introduced the way a person can take medical insurance even at the age of 65. The reason of age factor has to be avoided in giving health insurance.
- Even if a hospital’s name is removed from the authorized list of insurance company and if the policy holder is already taking treatment from that particular hospital and wishes to continue from the same hospital, the insurance company must enable this facility.
- The facility of changing to another insurance company upon policy holder’s wish must be enabled without any complications.
- All the required information about the insurance policies and plans should be printed in a single page that can be easily understandable by everyone.
- If a policy holder doesn’t like a health insurance policy and is willing to surrender it within 15 days that has to be accepted by the company without any further questions.
- Health insurance policy claims to be settled down within 30 days of submitting the claim form.
- If a claim is rejected for any reason, the reason has to be given in writing to the policy holder.
- Term plans for life insurance and health insurance for medical benefits combined new policies have to be introduced. For this, an insurance company can join hands with other insurance companies.
- Almost all existing health insurance plans today are all on one-year contract basis. This should be structured so as to continue throughout the lifetime.
- If more claims have been made, a policy renewal should not be refused citing that as a reason.
Policy holder should be explained about how much of the premium amount is spent on coverage and what is the agent’s commission.
In the newly declared regulations by IRDA, all the above implementations have been announced which will definitely be beneficial to all the health insurance policy holders. However, it is true while implementing these regulations, insurance companies will have certain complications.
When all these IRDA’s regulations are implemented in the health insurance policies, the premium amount will definitely go high. Chances are there for an increment in premium up to 20%, however there won’t be any decrease in the policy holder’s number due to this.
Since there are lots of benefits in health insurance policies, the chances are more that people will prefer to take health insurance.