The Insurance Regulatory and Development Authority of India (IRDAI) mandated health and general insurance companies to provide coverage during the grace period when health insurance premium is paid in installments, the insurance regulator said in an official circular.
Policyholders usually get a grace period ranging usually from 15 to 30 days for paying health insurance premiums, which is extra time past the renewal due date. Insurers did not offer policy coverage during this period previously.
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The IRDAI has now set a grace period for premium payments; 15 days for monthly premiums and 30 days for quarterly, half-yearly, or annually premiums, in a move to standardize this practice across the industry, CNBC TV18 wrote.
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In the grace period, the health insurance will now, stay active with benefits like sum insured, no claim bonus, waiting periods, and moratorium period for pre-existing diseases, Business Today reported.
“The new Master Circular requires insurers to process discharge authorizations within three hours, enhancing customer service and addressing a common grievance among policyholders, “Manish Dodeja, Head of claims & Underwriting at Care Health Insurance told LiveMint. “Insurers are urged to strive for 100% cashless claims.”
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“The updated norms also encourage diversity in product offerings, catering to various demographics and medical needs. They allow policyholders with multiple policies to choose the policy under which to claim. Enhanced transparency is ensured by providing a Customer Information Sheet with each policy. Policyholders stand to benefit from No Claim Bonuses and have the flexibility to cancel policies at any time for a refund of the unexpired premium,” he said.
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