Some of you may have realised the importance of buying health insurance probably when you already had paid hefty medical bills from your pocket. But many of you may share experience of being unsatisfied with your existing health insurance policy despite having been bought it at right age. And what's more, if you are worried about effectiveness of your health insurance policy; you wouldn't be alone to feel so. But from 1st of October 2013 things have changed for better. To make health insurance plans more customer-centric, Insurance Regulatory and Development Authority (IRDA) issued new set of rules this February and made effective from 1st of October.

What will change now?

Minimum entry age: Unlike earlier, you may now be able to buy health insurance till 65 years of your age if you are a first-time buyer. Although some policies may be exclusively offered to people belonging to certain age groups, this comes as good news to those elderly who have not yet bought health insurance and are still healthy.

Renewability: It has been a standard practice followed by insurance companies to allow you to renew plans only till 75-80 years of your age. But with introduction of new rules, insurers would offer you renewals of your policies for life time. This would be helpful for those who are in 80-plus age group.

Predictability in premiums charged: It has been observed in the past that companies often followed aggressive pricing in their initial years to gain market share. But as and when they achieved their primary objective they started increasing premiums randomly. This will stop now. Moreover, now onwards, your insurer can't charge you more if you file claims frequently. Insurers will have to consider all its health insurance policies before making any changes in the premium charged to a customer. This would make insurance premiums more predictable and avoid negative surprises.

Standardisation of terms and definitions: Since health insurance is a contract between you and the insurance company, it includes a number of terms and definitions. But experience so far has been that the same term is interpreted differently by different insurers. This may give rise to confusion and confusion often leads to problems while settling claims. Standardisation would make it easy for customers to understand policy wordings.

Standardisation of claim process: As per IRDA, decisions pertaining to claim settlement can't be outsourced and hence the insurers will now interact more directly with hospitals while handling claims. Third Party Administrators (TPAs) would have a major role only in processing activities now. Furthermore, simplification and standardisation of claim settlement form would help speed up the process of claim settlement.

PersonalFN is of the view that, new rules will certainly make health insurance policies more customer-centric. But increase in the age limit of first-time buyers and allowing life-time renewability of policies would make health insurance costly. Considering, benefits that may be reaped by policyholders, rise in premiums shouldn't be taken negatively. PersonalFN believes instead of worrying about little hikes in the insurance premium which are on cards, policyholders and the potential buyers should welcome these changes as they add value to your health insurance. New structure of health insurance policies may serve you better. Health insurance plays important role in your financial plan hence you must consider buying health insurance for yourself and your family.

Add Comments

Comments
mkanwal@rediffmail.com Dec 12, 2013 Can share your knowledge/views on top up health plans
venkat24056@gmail.com Jan 24, 2014 What ever you have written is available every where - write something unique so we start believing your headlines
tchinnappa@hotmail.com Mar 27, 2014 I have been denied medical claims of Rs one lakh on the basis of PED (Pre existing disease) which is not as per the diagnosis.TTK is the TPA and i would like to take up the issue kindly let me the how to go about it, to whom to contact etc thanks  Mrs chinnappa
bal.orange@gmail.com Nov 20, 2013 More informative which ordinary people can not get.
yrprasad1937@gmail.com Oct 05, 2013 a cheerfull news perticularly for sr citizens.

 1 2