Irdai puts on hold circular on genetic disorder claims

Insurance regulator Irdai has put on hold its directive issued in March to insurers with regards to rejection of claims related to 'genetic disorder'.

On August 27, the Supreme Court of India, while hearing Special Leave Petition (Civil), granted stay on the operation of a Delhi High Court judgement that held that exclusionary clause of 'genetic disorders' in insurance policies is too broad, ambiguous and discriminatory, violative Article 14 of the Constitution dealing with right to equality.

"In view of...stay granted by the Hon'ble Supreme Court of India, Circular (of March 19, 2018) stands abated until further orders," the Insurance Regulatory and Development Authority of India (Irdai) said in a circular.

However, the claim settlement in respect of all extant policies shall be as per the terms and conditions of the policy contracts as approved by the authority in accordance to the applicable regulatory framework, said the circular addressed to life, general and health insurance companies.

The Delhi High Court had directed the Irdai to have a re-look at the exclusion clauses in the insurance contracts to ensure that claims are not rejected on the basis of exclusions relating to genetic disorders like cardiac conditions, high blood pressure and diabetes.

Following the order, the Irdai had directed insurers "not to include" genetic disorders as one of the exclusions in new health insurance policies issued in respect of all their existing health insurance products and also in the new products.