New Norms For Health Insurance From Next Year

From January 1, 2024 onwards, the Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for health insurance companies to issue a Customer Information Sheet (CIS) to all health insurance policyholders at the time of buying a health insurance policy.  

As per the circular issued by IRDAI, the policyholders will have the option of cancelling the health policy within a specified period if they do not like it.

According to IRDAI, "the Customer Information Sheet will provide policyholders all important information about their health insurance policy in simple language the following:

a) name and type of policy
b) coverage details
c) waiting periods
d) limits and sub-limits
e) all exclusions
f) concepts like --
i. free look cancellation
ii. migration
iii. portability
iv. moratorium period
g) guidance on procedure for claims submission h) contact details/web links for grievance/complaint filing"

The new IRDAI directive also highlights the obligations of policyholders to make transparent and fair disclosures of relevant material information pertaining to their health.

According to IRDAI, "the insurers are also required to obtain signatures of the policyholders confirming that they have noted the details of CIS and received it. This step is expected to result in better-informed policyholders, reduced disputes and delays, and a seamless health insurance experience for policyholders".

The updated Customer Information Sheet will come into effect from January 1, 2024.