Page 10 - The Insurance Times July 2020

IRDAI

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SC notice to Centre, IRDA implementation of section 21 of the 50,000. You can opt for a cover in
Mental Healthcare Act. The petitioner multiples of Rs. 50,000, up to Rs. 5
on plea to extend insur- claimed that the inaction of the IRDA lakh. Insurers are allowed to offer one
ance for mental illness to implement the provisions of the ACT optional cover, the premium for which
The Supreme Court issued notices to has hampered the rehabilitation pro- will be mentioned specifically.
the government and Insurance Regu- cess of thousands of persons with men- The base cover will be offered on an
latory and Development Authority tal illness. indemnity basis whereas the optional
(IRDA) on a plea seeking directions to Standard covid-19 health cover shall be available on a benefit
all insurance companies to provide basis. The policy will pay for hospital-
medical cover for mental illness treat- insurance policy to cover ization expenses incurred by the poli-
ment. A three-judge bench headed by PPE costs cyholder for the treatment of covid-19
Justice Rohiton Nariman heard the on positive diagnosis for the infection
Irdai has revised the proposed standard
case through video conferencing and covid-19 health insurance policy. All from a government-approved diagnos-
issued the notice. tic center. It will cover room, boarding,
general and health insurance compa-
The petitioner, advocate Gaurav nies will now have to offer two prod- and nursing expenses. Surgeons,
Kumar Bansal, argued that due to the ucts: an indemnity as well as a benefit- anaesthetists, consultants, specialist
"red tape attitude of IRDA", the pro- based health product for covid-19 from fees, including consultation through
visions of the Mental Healthcare Act, July 15. The regulator earlier withdrew telemedicine, will be covered.
2017, have not been compiled and its the indemnity policy, which it had pro- Other costs such as oxygen, operation
non-compliance has affected those suf- posed in the first week of June and rec- theatre charges, surgical appliances,
fering from mental illness. ommended a benefit-based product. drugs and medicines, PPE kits, and
Bansal apprised the apex court that Among other changes, the provision for gloves among others will be admissible
IRDA, through a circular issued in Au- covering the cost of PPE kits and no if hospitalized for a minimum of 24
gust 2018, had mandated that the in- sub-limits on room rent stands out. hours. Intensive care unit and intensive
surers have to act in accordance with Read on to know what the revised prod- cardiac care unit expenses will be cov-
the provisions mentioned in the Men- ucts are and whether they'll benefit ered too. Unlike the earlier draft, the
tal Healthcare Act. Section 21 of the you. The minimum entry age for both revised policy does not have any sub-
act deals with non-discrimination of the policies shall be 18 years and the limits on room rent, which would work
persons suffering from mental illness. maximum is 65. Dependent children in the favour of the policyholder.
The plea also states that even the Par- shall be covered from the age of three The policy will also cover the costs of
liament of India has mandated that for months to 25 years. The policy tenure treatment at home provided the medi-
the purpose of insurance coverage, could be three months, six months or cal practitioner advises home treat-
mental illness has to be treated on par a year. ment and there is a continuous active
with other illnesses. The petitioner also Indemnity policy: The revised product line of treatment, which requires moni-
sought directions from the apex court will have a base cover with a cap on toring of health status by a medical
to direct the IRDA to submit an "ac- the sum insured up to Rs. 5 lakh. The practitioner through the duration of
tion taken report" on the issues of minimum sum insured will be Rs. the home care treatment.

10 The Insurance Times, July 2020