Renewal of health policies cannot be denied on the ground of age.
IRDA gazetted the new guidelines for the insurance sector. These guidelines cover IPO norms for general insurers, amalgamations between life insurers, age for entry/renewal for health insurance.
According to new health insurance guidelines, the entry age for a policy can be up to 65 years. Renewal cannot be denied on the ground of age, except in travel insurance. Non-allopathic treatment will be provided coverage, provided treatment has been taken in a government or government-authorized institution. An option to migrate to another suitable health insurance policy has been given to a consumer.
The guidelines further stated that those general insurers who have been operational for at least 10 years would be allowed to issue IPO. It further said that grant of approval would be valid for only a year within which the company would have to file the Draft Red Herring Prospect with Sebi.
IRDA also stated that under the ‘scheme of amalgamation and transfer of life insurance business regulations’, the companies would have to give a two-month notice of an intention to implement the scheme. And, this should be prior to applying.
IRDA says it might direct such companies to send a copy of this application to every Indian who is a policyholder. After in-principle approval, the life insurer would need to take approval from other relevant authorities such as the Foreign Investment Promotion Board, Sebi, RBI and Competition Commission of India.