Indian regulators always wake up after consumer complain and shout of injustice. Likewise, IRDA is no exception.
located at Mumbai and Thane have observed a surge in disputes over medical insurance claims because insurance companies are rejecting claims on the basis of ‘pre-existing illnesses’.
As per the regulation, when an applicant takes a medical insurance policy, he has to submit his medical records, details of ailments, diseases, diagnosis and hospitalisation for the previous four years. But according to insurance companies, applicants do not disclose the details of his ailments and his insurance claim is rejected at the time of submission of the medical evidences.
Therefore in order to solve the rising rate of rejection of insurance claims, IRDA will come out will uniform definition of pre-existing illnesses that will be binding on all companies.