Irdai makes it mandatory for health insurers & general insurers to cover mental illness, HIVs & disabilities

The Insurance Regulatory and Development Authority of India (Irdai), the insurance regulator recently announced that it is mandatory for all non-life insurers to launch health insurance policies. The health insurance policy should cover mental illness, HIV, Aids, or disabilities. The regulator has also asked the insurance companies to develop a model policy that outlines the minimal requirements and specifications for product design.

In a circular, Irdai said, “The insurers may determine the price of the product subject to complying with the norms specified in the Irdai (Health Insurance) Regulations, 2016 (HIR, 2016) and guidelines/circulars notified there under.” The policy duration for the product must be one year, renewed in accordance with the already established regulatory structure.

All terms of the Irdai (Health Insurance) Regulations, 2016, as well as all other applicable laws and other applicable rules and circulars, as amended from time to time, must be complied with by the standard product. Every standalone general and health insurer that has been awarded a certificate of registration to conduct business in general and/or health insurance must immediately start and provide their relevant product. It is underlined that this circular would take effect right away.

Last year in October, Irdai instructed insurance companies to make sure that all health insurance policies cover mental disorders, and insurers were required to put the new regulation into effect  by October 31, 2022.

Meanwhile, Irdai has also asked the general insurers to talk to transport authorities of 28 states and eight union territories to provide mandatory cover for uninsured vehicles.

According to the Ministry of Road Transport and Highways' tech platform, Vahan, 33.68 crore automobiles have been registered as of now. This indicates that more than 19 crore of automobiles on Indian roads have no insurance.