MAKING IT CONSUMER FRIENDLY

The new master circular on health insurance by the regulator repeals past circulars and is a step towards making insurance transparent and consumer friendly

- Narayan Krishnamurthy

One usually takes health insurance to protect one’s finances during illness and as a cover for medical expenses. It helps families manage healthcare, treatment, medication costs and diagnostics. There are many types of medical insurance available, yet policyholders find it a challenge to navigate health insurance, especially policy terminology and benefits. Complaints about excessive documentation, delays in claims or claims partially paid are prominent pain points.

To address policyholder concerns, IRDAI (Insurance Regulatory and Development Authority of India) has issued a comprehensive master circular on health insurance products. There are many policyholder-friendly changes announced which should address common concerns, especially the language of policy documents which aren’t easy to understand. There are 20 heads that the circular covers and there are guidelines for insurers too. Some of the prominent aspects of the circular which would reduce policyholders’ worries are: