IRDAI removes age bar for purchasing health insurance

Subject: Economy

Sec :Msc

Context:

The Insurance Regulatory and Development Authority of India (IRDAI) has removed the age limit for purchasing health insurance policies, with effect from April 1.

Key changes:

Earlier, there was an age limit of 65 years to buy new health insurance policies. IRDAI’s latest move is aimed at bringing in extended health benefits to the elderly.
The IRDAI directive mandates health insurance providers to develop specialized policies catering to senior citizens, and to establish dedicated channels for addressing their claims and grievances.

Premiums may be higher:

The recent decision to lift the age restriction on insurance coverage is a significant advancement.
Previously, only individuals up to 65 years old were eligible for insurance, leaving senior citizens, who often need healthcare the most, without coverage.
Now, with the removal of this restriction, even the elderly can access cashless insurance benefits, though premiums for this demographic may be higher.
This change will greatly benefit those in need of medical insurance, including children, maternity cases, and senior citizens, ensuring a healthier life for many.

About Insurance Regulatory Development Authority (IRDA):

IRDA is a statutory body set up by the IRDA Act, 1999.
It is an autonomous and apex body which has the responsibility to regulate and control the Insurance sector in India.
Insurance Regulatory Development Authority (IRDA) was established after the recommendations of Malhotra Committee report of 1994.
The committee had recommended the establishment of an independent authority for the regulation of the Insurance sector in India.
As per the section 4 of IRDAI Act’ 1999, Insurance Regulatory and Development Authority of India has a composition of a Chairman; five whole-time members; four part-time members, all appointed by the Government of India.