CLARITY AND ACCESSIBILITY

The IRDAI's proposed changes aim to improve the lives of health insurance policyholders by offering them much-needed simplicity and convenience.

The insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), recently issued a series of pronouncements and statements aimed at benefitting policyholders. These announcements encompass a wide range of topics, from the use of AI in insurance to modifications in the Customer Information Sheet (CIS) for health insurance, and compensation for withdrawn plans.

Let us explore some of the developments that are likely to be implemented in the future.

BENEFITS TO POLICYHOLDERS UNDER WITHDRAWN POLICIES

Even if you own a life insurance policy that has been withdrawn by your life insurer, policyholders will now be allowed to purchase rider benefits, such as accidental death and disability coverage, critical sickness coverage, or waiver of premium coverage. Until now, restrictions prohibited life insurance firms from making adjustments to their withdrawn plans. A statement issued by the regulator elaborated on the primary goal of this circular: “to provide existing policyholders with more flexibility while protecting their interests.”

The conclusion was arrived at after discussions with the Life Insurance Council. The statement issued by the regulator stated, “Through this initiative, IRDAI reaffirms its commitment to policyholders by providing greater flexibility and improving policyholders’ insurance experiences.”

These measures will ensure that policyholders receive certain benefits from policies that have been terminated by insurers. Policies that have been favourably welcomed by policyholders are often discontinued after a few years and are no longer available for purchase by them.