INSURANCE REGULATORY DEVELOPMENT AUTHORITY OF INDIA REGULATIONS 2024

• The newly introduced regulations have attracted significant attention, aiming to facilitate insurers in promptly addressing evolving market demands, streamlining business processes, and boosting insurance penetration, all while safeguarding the interests of policyholders. Emphasis is placed on ensuring good governance among insurers in the formulation and pricing of their products to achieve this objective.
• In the realm of health insurance, these regulations hold particular importance. For instance, there is a reduction in the waiting period for specific ailments from four years to three years.
• This translates to a shorter duration between purchasing the policy and obtaining coverage for specified diseases or treatments (excluding those resulting from accidents). Under the new norms, once the waiting period is completed, coverage for diseases or treatments is provided, contingent upon the policy being renewed without any interruption.
• Additionally, the definition of pre-existing diseases has been revised to encompass health conditions, ailments, injuries, or diseases diagnosed or treated by a physician within three years prior to the policy's commencement.
• The new norms also highlight the inclusion of AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homoeopathy systems) treatments in health insurance coverage. By mandating insurers to offer Board-approved policies, the regulator aims to ensure equitable treatment of AYUSH alongside other treatment options.
• Previously, insurers were encouraged to provide coverage for one or more AYUSH systems, subject to specified guidelines, until March 31, 2024.
• Furthermore, insurers are discouraged from refusing to renew health insurance policies based solely on the insured's previous claims, except in the case of benefit-based policies where the policy terminates upon the payment of covered benefits, such as critical illness policies

3.Insurance Regulatory Development Authority of India (IRDAI)

• The Insurance Regulatory and Development Authority of India or the IRDAI is the apex body responsible for the regulation and development of the insurance industry in India.
• It is an autonomous body.
• It was established by an act of Parliament known as the Insurance Regulatory and Development Authority Act, of 1999. Hence, it is a statutory body.

IRDA Functions

• Its primary purpose is to protect the rights of the policyholders in India.
• It gives the registration certificate to insurance companies in the country.
• It also engages in the renewal, modification, cancellation, etc. of this registration.
• It also creates regulations to protect policyholders interests in India.