Health Insurance
3 Changes in Health insurance regulation You Should Know About Insurance Regulatory and Development Authority (IRDA) has made three changes to health insurance guidelines which were issued in February 2013. Here are the main changes 1. All health insurance policies have free-look period of 15 days from the date of receipt of the policy. The amendment restricts free-look period for policies of one year or more. It means any health insurance policy of term less than one year will not have any free-look period to cancel the policy.
2. No-claims-bonus (NCB) offered for not filing a claim in policy year is restricted to indemnity plans (mediclaim). It is usually given in terms of increasing the sum insured from 5% to 50% depending on the policy. There is also upper limit up to which it can be accumulated with 100% being the highest limit. Health insurance guidelines 2013 stated that filing a claim in any particular year, the NCB accrued may be reduced at the same rate at which it was accrued. Prior to the guidelines, the policyholder used to lose complete NCB after filing a claim.
3. As per the guidelines, cumulative bonus is not applicable for benefit based policies which pay fixed amount for procedures or illnesses. The amendment makes exception of Personal Accident (PA) policies. It means consumers can hope to see PA policies offering cumulative bonus.
4. Ayush (Ayurveda, Yoga, Unani, Siddha and Homoeopathy) coverage was included in the health insurance guidelines in February 2013. Some media have incorrectly stated that IRDA has included it now. Health insurance guidelines 2013 stated - Insurers may provide coverage to non-allopathic treatments provided the treatment has been undergone in a government hospital or in any institute recognised by government and/or accredited by Quality Council of India/National Accreditation Board on health or any other suitable institutions.
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