Moratorium to refund: Reforms in health insurance you must know about

Be meticulous with disclosures during policy purchase despite lowering of moratorium period

The Insurance Regulatory and Development Authority of India (Irdai) issued a master circular on health insurance on May 29, 2024, listing 20 provisions. These norms, if  properly implemented, will make health insurance simpler, more accessible, and a reliable instrument for protecting customers’ interests.

“The master circular encourages insurers to adopt customer-centric policies. This can positively impact insurance penetration. It will lead to a UPI-like movement—deeper penetration and higher adoption—within the health insurance ecosystem,” says S Prakash, managing director/chief executive officer designate, Galaxy Health and Allied Insurance.

Proportionate refund of premiums

Previously, if a customer purchased a health insurance policy and decided to discontinue