Complaints of insurers refusing to offer COVID-19 policies; IRDAI steps in

With complaints of insurance companies refusing to offer and renew COVID-19 insurance policies on the rise, the Irdai has recently directed the insurers not to deny COVID-19 policy coverage to customers in the wake of rising infection rates.

IRDAI stated, “It has come to the notice of the Authority that some insurers are not offering Corona Kavach and Corona Rakshak Policies to customers, and some insurers are not renewing such policies.”

“In the wake of rising infection rates due to the second wave of the COVID-19, the insurable public require appropriate health insurance coverage and it is not correct to deny such coverage to the customers in this crucial time,” IRDAI wrote in a letter to insurance companies.

All the insurers are advised to ensure that wherever coronavirus specific standard products have been filed and approved by the Authority, the same should be offered to the customers according to the insurer’s underwriting policy.

“Similarly, where the underlying corona specific product enables the insured to renew the policy as specified in the IRDAI circular, insurers are advised to renew such policies subject to the underwriting policy of respective insurers,” IRDAI further said.