INSURANCE AND AGE BAR - ECONOMY
News: Indian Navy conducted Exercise
Poorvi Lehar on East Coast
What's in the news?
●
The Insurance Regulatory and Development Authority
of India (IRDAI) has removed the age
limit for purchasing health insurance policies, with effect from April 1.
Insurance Sector in
India:
●
India’s insurance industry is one of the premium sectors experiencing upward
growth.
●
India is the fifth
largest life insurance market in the world's emerging insurance markets,
growing at a rate of 32-34% each year.
●
The insurance industry of India has 57 insurance companies - 24 are in the
life insurance business, while 34 are non-life insurers.
●
Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company.
There are six public sector insurers in the non-life insurance segment.
Regulation:
●
The Insurance Regulatory and Development Authority
of India (IRDAI) is the regulatory
body that oversees and regulates the insurance sector in India.
●
It ensures that insurance companies comply with
regulations, protect policyholders' interests, and maintain the stability of
the insurance market.
Key Takeaways from the
Notification:
1. No Age Limit To
Purchase Health Insurance:
●
Expansion of Insurance Coverage - The recent
development has pushed insurance companies to provide insurance to people
irrespective of their age.
○
Previously, individuals could only buy new policies
until age 65, but as of April 1, this limitation has been removed, allowing
people of any age to obtain coverage.
●
This would promote inclusivity and accessibility in
healthcare.
2. Inclusive Health
Insurance Mandate:
●
IRDAI has mandated all insurers to offer health
insurance products catering to all age
groups, including seniors, students, children, and maternity needs.
●
Insurers must provide coverage to individuals with pre-existing medical conditions, such
as cancer or heart failure, without refusal.
3. Premium Payment:
●
Insurers are required to offer premium payment in installments for policyholder convenience, and
travel policies can only be provided by general and health insurers.
4. Non-Restricted
Coverage for AYUSH Treatment:
●
There is no cap on coverage for AYUSH treatments,
including Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy.
5. Flexibility in Claim
Filing:
●
Policyholders with benefit-based policies are
permitted to file multiple claims with different insurers, offering greater
flexibility.
6. Specialized Channel
for Senior Citizen Complaints and Claims:
●
A specialized channel to address complaints and
claims from senior citizens, ensuring a tailored and responsive approach to
their needs.