Page 12 - Insurance Times April 2023

With the objective of making health
IRDAI mandates general insurers to cover mental
insurance cover available for certain
illness, HIV vulnerable sections of society, the
IRDAI has made it mandatory for general insurers or stand-alone health in- IRDAI circular mandated general and
surers to launch health insurance policies that can provide coverage to people health insurers to offer a health cover
with mental illness and those afflicted with HIV/AIDS and disabilities. for persons with disabilities, persons
afflicted with HIV/AIDS, and those with
In its latest circular, IRDAI said all general and stand-alone health insurers
mental illness. It also asked them to
who have been issued a Certificate of Registration to transact general and
put in place a board- approved under-
health insurance business should mandatorily launch and offer their respec-
writing policy that ensures that no
tive products immediately.
policy cover excludes such people.
While some insurers have started inte-
Health cover increased to with the design, pricing and opera-
grating these covers as part of their
tional modalities of offering health
Rs. 25 lakh regular products as riders or add-ons,
cover for mental illness, disabilities and
Looking at the popularity of the free HIV after the IRDAI's February 27 cir- others are saying that developing suit-
universal health care scheme in the cular. able products catered to these sections
of the population could require some
state, the Rajasthan government has
As it is effective immediately, the ur-
increased health insurance cover from more time and work.
gency of the circular has left some gaps
Rs 10 lakh to Rs 25 lakh per family. "The circular would encourage provid-
in terms of the operational metrics of
ers to evaluate and develop an appro-
Similarly, the government has in-
the cover owing to the lack of prece-
priate product for the vulnerable sec-
creased the insurance amount to Rs 10
dence and sufficient information sur-
tion of the society," said Sharad
lakh from Rs 5 lakh in the
rounding these medical issues, industry
Mathur, MD and CEO of Universal
Mukhyamantri Chiranjeevi Durghatna
players said.
Sompo General Insurance.
Bima Yojana (Chief Minister Chiranjeevi
"We are discussing with the regulator
Accident Insurance Scheme). In 2022, IRDAI had asked insurance
and amongst ourselves to understand
The increase in the insurance scheme companies to cover mental illness un-
the products better, seek clarity and
is likely to be applicable from April 1, der their health insurance policies by
then take it forward. Once we under- October 31, 2022. This was followed by
2023.
stand the requirement from the mar-
a November 2022 directive asking in-
ket as well as the regulatory perspec-
surers for plans to introduce cover for
Insurers seek clarity on tive, we can build something that ca- mental health. However, lack of
pricing, design of cover for ters to the exact needs of the custom- progress on this front likely prompted
ers," said Sanjay Datta, Chief - Under- the regulator to issue a fresh directive
mental illness
writing, Reinsurance and Claims at mandating such coverage, industry
Insurance companies are grappling
ICICI Lombard General. players said.
The Insurance Times April 2023 11