The Insurance Regulatory and Development Authority of India (IRDAI) has recently mandated health insurance companies to provide special coverage for people with disabilities (PwDs), and those suffering from HIV/AIDS and mental ailments. In the circular, the insurance regulator has asked the insurers to determine the price of the product in line with its guidelines. While industry experts have welcomed the move, they pointed out that lack of proper data for the purpose of pricing is a challenge for them.
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“We are evaluating to construct a suitable cover for this special segment. The lack of data is a challenge but it is not insurmountable. We look forward to serving the need to the best possible extent," said Sharad Mathur, MD & CEO at Universal Sompo General Insurance.
Another challenge that experts pointed out is the “urgency” shown by IRDAI.
"The urgency shown by IRDAI should ensure insurance companies develop these products at the earliest. Pricing like other policies will be for one year," said Sanchit Malik, Co-founder and CEO at Pazcare.
It must be noted that HIV and mental illnesses are already a part of many health insurance products. Earlier too, the insurance regulator directed companies to include mental health coverage in addition to covering most other illnesses. However, there have been delays by insurance companies.
Now, businesses are required to market and offer their respective products without delay as mandated.
Sanjay Datta, Chief, Underwriting, Reinsurance and Claims at ICICI Lombard, said the firms are discussing with the regulator as well as among themselves to understand the products better, get clarity and then take it forward.
"Once we understand the requirement from the market as well as the regulatory perspective, we can build something that caters to the exact needs of the customers. We will do extensive customer research and product configurations to make it successful and effective in catering to customers' requirements. Currently, we have integrated both HIV and mental illness as part of our regular product as a rider and as an add-on. Both inpatient and outpatient products will also cover any related hospitalisation expenses," he told CNBC-TV18.com.
Notably, depression, anxiety, and stress are common in Indian culture. India’s population is increasingly feeling the strain of its growing mental health problems and in some cases, it has become a matter of national security. And currently, a mental health insurance policy might offer limited coverage and is an add-on benefit under a health plan. However, with the new order, the insurance companies will make the cover more extensive and standalone.
