The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurers not to reject any claim, on existing policies, based on exclusions related to ‘genetic disorder’.
It also advised the companies to refrain from including ‘genetic disorders’ as one of the exclusions in new health insurance policies.
A circular in this regard, to all life, general and health insurers, follows the High Court of Delhi, in a case, directing IRDAI to take a re-look at the exclusionary clauses in insurance contracts. The High Court wanted the regulator to ensure that insurance companies do not reject claims on the basis of exclusions relating to genetic disorders.
The High Court had, in the matter of United India Insurance Company versus Jai Parkash Tayal, held that the exclusionary clause of ‘genetic disorders’, in the insurance policy, is too broad, ambiguous and discriminatory – hence violative of Article 14 of the Constitution of India, a circular from IRDAI Member (Non Life) P.J.Joseph.
Thus, in pursuance of the High Court’s directions, all insurance companies offering contracts of health insurance are directed that no claim in respect of any existing health insurance policy shall be rejected based on exclusions related to ‘genetic disorder’.
All the companies are directed not to include ‘genetic disorders’ as one of the exclusions in new health insurance policies that they issue as well as in the new products they launch, the circular said.
