Premium rates are unlikely to rise in the short term despite rule changes related to pre-existing diseases.
The IRDAI, in a circular on 10 February, amended the definition of pre-existing disease (PED), allowing claims to be made within three months of buying a policy.

Industry players say that the easing of the rules may result in a higher number of claims because it would help in reducing claim rejection rates in health insurance policies, according to local media reports.

However, industry executives also say that insurers are unlikely to hike their medical insurance premium rates immediately.

In the previous rule, which was effected through a circular issued in September 2019, the IRDAI directed that if certain illnesses were diagnosed within three months of buying the health insurance policy, those would be considered as pre-existing diseases and covered under the health insurance policy.

However, the latest circular states that no such diseases will be treated as pre-existing diseases even if diagnosed within three months, or later, after purchasing the health insurance.


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