The Insurance Regulatory and Development Authority of India (IRDAI) has taken a significant step towards enhancing accessibility and affordability in health insurance. As of April 1, 2024, the age cap on purchasing health insurance policies has been completely removed. This move is aimed at creating a more inclusive healthcare ecosystem in India and encouraging insurance providers to diversify their product offerings.
Key Changes:
- No Age Restrictions: Previously, individuals were restricted to purchasing new insurance policies only until the age of 65. However, with the recent changes, anyone, regardless of age, is now eligible to purchase new health insurance.
- Tailored Products: Insurers are now required to offer health insurance products catering to all age groups. This includes designing specific policies for senior citizens, students, children, maternity, and other demographics as specified by the Competent Authority.
- Inclusive Coverage: The move opens avenues for people above 65 to seek health cover. Insurers, based on their board-approved underwriting guidelines, can now cover individuals above 65, subject to affordability and viability.
- Pre-Existing Conditions: Insurers are prohibited from refusing to issue policies to individuals with severe medical conditions like cancer, heart or renal failure, and AIDS.
- Reduced Waiting Period: The health insurance waiting period has been decreased from 48 months to 36 months. After this period, all pre-existing conditions must be covered, regardless of whether the policyholder initially disclosed them or not.
- Benefit-Based Policies: Insurers are now allowed to provide benefit-based policies that offer fixed costs upon the occurrence of a covered disease, rather than indemnity-based policies that compensate for hospital expenses.
This progressive step by IRDAI aims to make health insurance more accessible and comprehensive for all age groups. It’s a welcome change that ensures better protection and peace of mind for individuals and families across India.