“INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA (IRDAI) DIRECTS ALL HEALTH INSURERS TO LAUNCH HEALTH INSURANCE POLICIES FOR COVERAGE TO PEOPLE WITH MENTAL ILLNESS AND HIV”
In a welcome move by the Insurance Regulatory and Development Authority of India (IRDAI) it has made it mandatory for all non-life insurers to launch health insurance product as per the norms specified in Health Insurance Regulations, 2016 that can provide coverage to people with mental illness and or those suffering with HIV, Aids, or disabilities.
IRDAI has directed the all the health insurers to ensure that no proposal from the people with mental illness and HIV is denied coverage.
The policy tenure of the product shall be for a period of one year and renewable in accordance with the regulatory framework.
It is mandatory that every general and standalone health insurer issued with a certificate of registration to transact general and/or health insurance business, shall mandatorily launch and offer their respective product with immediate effect.
According to the Mental Healthcare Act, 2017, every health insurer will have to make provisions for medical insurance for the treatment of mental illness as they do for the treatment of physical illness.
In October 2022, IRDAI had directed insurance companies to ensure all health insurance policies cover mental illness. Insurers were asked to implement the new rule by October 31, 2022.
It may not be out of place to mention that Covid 19 has increased the focus on mental health issues owing to the increasing levels of stress and anxiety. While people are more open about such issues, they are also seeking medical treatment and therapy for the same and therefore under such circumstances a health insurance product with coverage is the need of the hour.
The insurers are now expected in their health plans to accommodate a larger array of health conditions ensuring wider protection and a comprehensive plan in place to meet the rising demand for health insurance in India.
This initiative has made it mandatory for non-life insurance companies to introduce health covers that cater to these individuals.
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