The Insurance Regulatory and Development Authority of India (Irdai) has asked all insurance companies providing health insurance to confirm compliance with regulations to cover mental illness by all insurance products before October 31.
Issuing a circular, Irdai has reiterated that all insurance products shall cover mental illness and comply with the provisions of the Mental Healthcare Act, 2017 without any deviation. The Act came into force with effect from May 5, 2018. According to the Act, every insurer shall make provision for medical insurance for treatment of mental illness on the same basis as is available for treatment of physical illness.
The insurance regulator in August 2018 had directed all insurance companies to comply with the provisions of the Mental Healthcare Act with immediate effect. “Insurers are requested to confirm compliance before October 31, 2022,” Irdai said in a circular issued on Tuesday.
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The insurance regulator has also said it is observed that many health insurance products that are marketed by insurers are not providing cover to newborns/infants with internal congenital birth defects from day one, thus going against the “true spirit” of the guidelines.
It was mandated by Irdai earlier this year that internal congenital diseases, genetic diseases or disorders are not allowed to be incorporated as exclusions in the terms and conditions of the policy contract. The intent of the above provision was to cover newborns with internal congenital birth defects from day one.
It is reiterated that all insurance products that cover newborns/unborns shall comply with the necessary provisions without any deviation and provide coverage from day one without imposing any waiting periods/sub-limits or any other restrictive conditions, Irdai said in its circular dated October 18. “These instructions shall come into force with immediate effect,” Irdai said.