The Insurance Regulatory and Development Authority of India’s (IRDAI) February 10, 2020 circular is likely to cause more than a flutter in the general insurance industry. The amendment in the definition of pre-existing disease (PED) allowing claims to be made within three months of buying a policy may result in a higher number of claims.
But experts say insurers are unlikely to hike their premium rates immediately and will in all probability absorb the impact, for now. In insurance parlance, claims made soon after the purchase of a policy are referred to as ‘early claims. ...
