Insurance Regulatory and Development Authority (IRDA) has been found to be highly sensitive to the special needs of senior citizen policyholders. Â It has been always intervening proactively with all private players and ministries concern to provide a healthy environment for elderly people.
Its regulatory actions have always been benevolent. Take for instance in financial year 2006-07, when some insurers drastically raised hospitalization policy premiums, IRDA laid down cap for such revisions. This move was aimed to support the industry as well as provide benefits to end consumer.
Later IRDA constituted a committee on Health Insurance for senior citizens to go into the special requirements that the elderly have. Elderly do not earn much and hence, do not constitute the premium end of the market. Owing to this they are left at the bottom of the spectrum and largely ignored by the insurers.
It is upto the regulator to ensure that not only does the private sector is obliged to allocate resources towards the elderly but also provide them peerless service while doing so.
Large number of recommendations of this committee was implemented by the finance ministry.
IRDA has also issued instructions about health insurance for senior citizens to insurance companies such as:-
- IRDA has said that individuals are allowed to buy new health insurance policy up to the age of 65 years.
- Any rejection of the proposal for a health insurance of senior citizen should be in writing to the applicant providing reasons for the same.
- A senior citizen should be given an option to change his TPA wherever practicable.
- At least 50% cost for the pre-insurance medical examination may be reimbursed where the risk is accepted by the insurer.
- NO insurer can reject the renewal of a health insurance policy except on the grounds of fraud, moral hazard or misrepresentation.