The Insurance Regulatory and Development Authority of India (IRDAI) has shortened the moratorium period for health insurance policies from eight years to five--a historic change in the health insurance sector in India.
Under the new rule, policyholders can no longer worry about claim rejections due to the non-disclosure of pre-existing conditions after 60 months of continuous coverage, except in cases involving fraud. This move aims to make health insurance more accessible and predictable for consumers.
This regulatory change will prompt insurance companies to revisit their underwriting and claims strategies. Under the previous eight-year moratorium, insurers had ample time to verify policyholder disclosures, which sometimes led to claim rejections over minor inaccuracies or undisclosed medical history.
With the moratorium now reduced to five years, insurers must place greater emphasis on collecting accurate information and conducting thorough risk assessments at the point of policy issuance. They also face a shorter window to resolve any claim disputes.