Complaints of insurers refusing to supply Covid insurance policies: Irdai steps in

With complaints of insurance coverage corporations refusing to supply and renew Covid insurance coverage insurance policies on the rise, the Insurance Regulatory and Development Authority of India (Irdai) on Monday directed insurers to not deny Covid coverage protection to prospects within the wake of rising an infection charges.
“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,” Irdai mentioned. The regulator has been flooded with complaints about insurers refusing to supply or renew Covid insurance policies fearing spurt in claims.
“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 mentioned in a letter to insurance coverage corporations. All insurers are suggested to make sure that wherever Corona particular normal merchandise have been filed and permitted by the Authority, the identical needs to be provided to the purchasers in line with the insurer’s underwriting coverage, it mentioned.

“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,” it mentioned. As the pandemic has accentuated the necessity for medical insurance, all insurers are suggested to actively promote safety by medical insurance in order to develop the much-needed belief and goodwill of most people, Irdai mentioned.
“Insurers have seen a spurt in claims under the Covid policies. They don’t want to take a hit in their books,” mentioned an insurance coverage supply. Two corona-specific merchandise — Corona Kavach and Corona Rakshak — have been launched by insurers below the steering of Irdai.