Health insurance can be tricky to understand for most people in India. Hence, many a time, people avoid buying the policy altogether. However, considering the urgency of the product with the on-going situation, every individual needs to have a health insurance plan in place.
From October 2020, there are several changes implemented by the Government of India that are bound to affect your finances. In simple words, these changes will impact your regular expenses in many ways.
Health insurance plans in India is one such section that will change entirely from this month. As per the Insurance Regulatory and Development Authority of India (IRDAI), insurers can no longer reject health insurance claims that easily. As per the new guidelines, the insurance providers cannot deny claims of the health insurance policyholder paying premiums for more than eight years.
Moreover, the policy will be standardised across the sector and will cover a wide range of health conditions. With such extensive coverage, the health insurance premiums are bound to increase. Let us take a look at the changes implemented in the health insurance sector that will come in effect from October 01, 2020.
- The number of critical health conditions under the health plan has increased.
- The primary health insurance plan will cover over 17 major health conditions.
- In case the policy covers over 10 major health ailments, the insurance premiums will reduce accordingly.
- If the policy covers over 30 major health ailments, the health insurance premiums will increase as well.
- For policy purchased from October 2020 will see a rise in premium prices by 5-20 per cent.
- Health insurance plans will cover psychiatric, genetic, and neuro diseases as well.
- The policy will further cover neuro disorder, oral chemotherapy, robotic surgery and stem cell therapy as well.
Besides these new health insurance coverage guidelines, IRDAI has also rolled out a few terms and conditions for pre-existing diseases. These are as follows –
- If you are diagnosed with a disease 48 months before buying the health insurance plan, it will be considered as a pre-existing illness.
- Also, any health conditions diagnosed after three months of the health insurance issuance will be regarded as a pre-existing illness.
- Insurers cannot reject claims of the policyholder after eight years of premium payment.
- Moreover, there is no re-look at the policy after eight years of premium payment.
- After eight years of health insurance renewal, false information alibi will no longer work in favour of the insurer and will be considered as mere negligence on their part.
To Sum It Up
Standardising health insurance plans in India make it simple for the audience to understand the policy. Further, extending the number of diseases covered under the primary health plan will only benefit the policyholder. However, it is understandable that it will impact the health insurance premiums going ahead.
You can use the health insurance calculator to determine the premiums on your chosen coverage and add-on benefits. Then, based on your medical necessities and affordability, you can buy a health plan that best suits yours and your family’s needs.