IRDA asks insurers to design policy for HIV/AIDS patient: Meena

IRDA has asked all life insurance companies to design products and provide insurance cover for HIV/AIDS patient, Parliament was informed today.

 

All life insurers are required to put-in place a board approved underwriting policy with respect to life insurance products for people living with HIV/AIDS (PLHA), Minister of State for Finance Namo Narain Meena said in written reply to the Lok Sabha.

 

"The (draft) circular provides that life insurance cover for PLHA should not be denied if the eligibility criteria as per the board approved underwriting policy are satisfied," he said.

 

The circular also provides for health insurance products offered by life insurers for those who are HIV negative at inception of the policy and acquire HIV/AIDS after commencement of insurance policy, he said.

 

The Insurance Regulatory and Development Authority (IRDA) issued a draft circular on this regard on October 11, 2013.

 

With respect to such persons who are HIV negative at date of commencement of the contract and subsequently found to be HIV positive during the term of the policy, the circular states that the insurers should not reject/deny any claim on such grounds and in all such cases, the underwriting guidelines and claims settlement guidelines applicable at the time of commencement should be applicable, he said.

 

Meena also said, the IRDA have circulated the circular to all the life insurers including Life Insurance Council inviting comments.

 

Some of the main observations received from insurers include the apprehension that long term health products may not be viable for this category of persons for reasons like limited data available on health care utilisation and co-morbidities/co- infections associated with HIV/AIDS, he said.

 

Some insurers are of the view that there should be specific provisions in the guidelines for mandatory disclosure of  the diagnosis of HIV/AIDS by the proposed insured so that appropriate actions may be taken by the insurer which may include suggesting the applicable product and loading on premium or denial of claim where material information is not disclosed appropriately in the proposal form, etc, he said.

 

Insurance companies provide insurance cover for serious or incurable diseases under benefit based policies generally called as 'Critical Illness Policies', he said.

 

In a separate question, Meena said, no guidelines have been issued by the IRDA for up-gradation of direct broking licence to composite broking licence.

 

However, regulations prescribes that any broker who has been licensed under a specified category may apply for change of category, subject to a condition that one year should have lapsed from the grant of licence in the first instance, he said.