The IRDAI has directed all general and health insurers to offer a specific cover for persons with disabilities (PWD), persons afflicted with HIV/AIDS, and those with mental illness.
In a circular dated 27 February 2023, the regulator orders insurers to put in place a board-approved underwriting policy that ensures that no proposal from the above-mentioned categories of people is denied for reason of the above-stated disabilities and/or illnesses.
The insurers may determine the price of the product subject to complying with the norms specified in health insurance regulations. The policy tenure of the product shall be for a period of one year and renewable.
Every general and standalone health insurer, which has been issued a certificate of registration to transact general and/or health insurance business, shall mandatorily launch and offer their respective product immediately.
The circular appears to be a response by the IRDAI to the Delhi High Court that in a hearing on a case in December 2022 directed the regulator to call a meeting with all insurers about designing insurance products for persons suffering from disabilities, HIV/AIDS, mental illnesses, as well as for transgenders. The court ordered the IRDAI and insurance companies to submit a status report before 17 March 2023.
Repeated directives
It is unclear how effective the 27 February 2023 circular will be because the IRDAI has issued several directives to insurers to offer medical insurance coverage for people with such conditions. However, insurance companies are reluctant to provide coverage to people with pre-existing health conditions.
