The Insurance Regulatory and Development Authority of India (IRDAI), the statutory body of insurance companies and intermediaries in India, marked the celebration of its Silver Jubilee(25 year) on 19th April 2024.
History of IRDAI:
i.In 1993, the Government of India formed a committee under the chairmanship of RN Malhotra, former Governor of the Reserve Bank of India (RBI), to propose recommendations for reforms in the insurance sector.
ii.Following the recommendations of the Malhotra Committee report, IRDAI was constituted as an autonomous body to regulate and develop the insurance industry in 1999.
iii.IRDAI was formed as a statutory body under the IRDAI Act, 1999 and was incorporated on 19th April 2000.
Insurance for All by 2047:
i.In line with its vision of “Insurance for All by 2047”, IRDAI launched Bima Trinity, an all-in-one insurance product which covers health, life, property, and accident risks.
ii.IRDAI has set to deploy “Bima Vahaks” in every Gram Panchayat across India by December 31, 2024 to expand insurance penetration in rural India.
IRDAI Removes Age Limits on Health Insurance Purchase
IRDAI has removed the age cap on buying health insurance policies, effective from 1st April 2024. Now anyone, regardless of age, is eligible to purchase new health insurance.
- Prior to this, individuals aged above 65 years were restricted from purchasing new insurance policies.
- This aims to create a more inclusive healthcare ecosystem in India and to encourage insurance providers to diversify their products.
Key Points:
i.IRDAI has instructed health insurance providers to introduce tailored policies for specific demographics, like senior citizens, and establish dedicated channels for handling their claims and grievances.
ii.IRDAI has also decreased the health insurance waiting period from 48 months to 36 months.
iii.IRDAI has stated that all pre-existing conditions should be covered after 36 months, regardless of whether the policyholder disclosed them initially or not.
- IRDAI has prohibited health insurers from rejecting claims based on pre-existing health conditions after 36 months.
iv.Insurance companies can offer only benefit-based policies, which offering fixed costs upon the occurrence of a covered disease. They are barred from introducing indemnity-based health policies, which compensate for hospital expenses.
About the Insurance Regulatory and Development Authority of India (IRDAI):
Chairman– Debasish Panda
Headquarters– Hyderabad, Telangana
