Insurance regulations mandate insurers to provide prospective buyers and policyholders with a wider choice of products, riders, and coverage options, catering to all age groups, including senior citizens
Insurance is crucial during old age, especially when there is no one to depend on. For example, the government’s decision this year to extend the Ayushman Bharat scheme to all senior citizens aged 70 and above is evidence of this need. This cashless scheme offers eligible beneficiaries a health cover of Rs 5 lakh, provided they register. However, this amount may not suffice for treating several illnesses.
Interestingly, regarding the number of insurance schemes currently available for senior citizens in the private insurance market and their affordability, Pankaj Chaudhary, Minister of State in the Ministry of Finance, on December 16, 2024, stated, “Insurance sector regulator the Insurance Regulatory and Development Authority of India (IRDAI) has issued IRDAI (Insurance Products) Regulations, 2024 and Master Circular on IRDAI (Insurance Products) Regulations 2024-Health Insurance, containing provisions to ensure that insurers make available products / add-ons / riders to provide wider choice to the policyholders / prospects catering to all ages. These two documents direct that insurers shall allow for customization of products by customer by providing the flexibility to choose products / add-ons / riders as per his/her specific needs”.
He further added, “In compliance with the above, insurers are offering various health products that are offering coverage to all age groups including senior citizens”.
On the affordability question, he clarified that Irdai’s (Insurance Products) regulations, 2024, mandate that the premium amounts should be fair, not discriminatory, and provide ‘value for money’.
There are various schemes in the market catering to all age groups and their different requirements. Private insurers offer add-ons and riders for specific needs, so policyholders or potential buyers have many options to look into and choose from.
While grievances are inevitable in any service, multiple mechanisms exist for resolving complaints. The ‘Bima Bharosa Portal’ is one such portal that integrates industry-wide grievances in a centralised repository and provides an effective complaint management system.
The second level is to email the grievance to the Irdai. This is the alternate redressal platform for policyholders for a faster and cost-effective resolution.
To address senior citizens’ complaints Irdai’s rule stipulates to establish a separate channel to handle health insurance-related claims and complaints.
However, for health insurance which is the most crucial for senior citizens, IRDAI has directed insurers to establish a separate channel dedicated to handling health insurance claims and complaints specifically for senior citizens.