In a move to give relief to policyholders, IRDAI has asked insurance companies not to include diseases that a policyholder contracts after buying health insurance policies.
So far, if a policyholder was diagnosed with a major ailment within three months of buying a policy, insurance companies would consider the disease as pre-existing condition, which has a waiting period of 4 years.
In a circular, IRDAI has clarified that pre-existing diseases include diseases, which are being diagnosed within 48 months prior to the effective date of issuance of the policy.
The move will help the industry reduce instances of claim rejection in health insurance.