IRDAI Rules 2024-25: Health Insurance Customer-Friendly | PolicyX
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Latest Rules By IRDAI in 2024-25

New IRDAI rules for 2024-25 aim to make health insurance more customer-friendly and transparent. Policyholders can now cancel policies anytime for a…

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Written by Simran saxena
Published: 21 Aug 2024
Updated: 26 Jul 2026
Expert Verified
IRDAI Licensed

New IRDAI Rules in 2024-25 to Make Insurance More Customer-Friendly

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new regulations in 2024-25 to make health insurance policies more customer-centric and easier to navigate.

IRDAI, the Insurance Regulatory and Development Authority of India, is the regulating body for the insurance sector. It is a statutory body established to protect the interests of policyholders and ensure the growth of the insurance industry in India.

We have compiled the latest IRDAI regulations in this article. Scroll down to learn more.

1. Cancel Policy Anytime, Get Higher Refund

Before the IRDAI Rule Now
  • If you cancelled your policy after the free-look period, no refund was provided.
  • You can cancel your policy anytime by giving 7 days' prior written notice to your insurer.

2. Option to Reduce Insurance Premiums

The no-claim bonus system has been updated. Now, you will receive either a cumulative bonus or a discount on the premium. Here's how:

  • Cumulative bonus: Increased sum insured without a change in premium.
  • Discount on premium: Premiums will be reduced.
Before the New Rule Now
  • If no claim was made during the policy tenure, a no-claim bonus was provided.
  • If no claim is made during the policy tenure, you will receive either a cumulative bonus (increased sum insured) or a discount on premiums. You can choose one.

3. No Rejection of Health Insurance Claims Without Review

Insurance companies must establish a three-member Claim Review Committee (CRC) to review all claims.

On this, IRDAI states, "In case the claim is repudiated or disallowed partially, details shall be conveyed to the claimant along with full details referencing the specific terms and conditions of the policy document."

Earlier Now
  • Insurers often rejected claims based on numerous clauses, which was a major concern for policyholders.
  • No claim will be rejected without CRC approval. Insurers and TPAs will now collect necessary documents directly from hospitals, relieving policyholders of this burden.

Note: A higher penalty will be charged if the insurance company does not comply with the Ombudsman's Order.

4. Key Details to be Displayed on Websites

To assist consumers, IRDAI has mandated insurers to display the following information on their websites:

  • Names and details of cashless hospitals and healthcare service providers.
  • Details of common network hospitals.
  • Information for policyholders regarding claim reimbursement when using non-empanelled hospitals.
  • Claim settlement procedures.
  • List of available and withdrawn products.
Earlier Now
  • Previously, finding information on claim settlement or network hospitals required extensive searching or direct calls to the company.
  • Now, all essential information will be readily available on the insurer's website.

Conclusion

These steps taken by IRDAI aim to make health insurance more customer-friendly, inclusive, and transparent. From reducing cancellation charges to simplifying claims, IRDAI has made health insurance more efficient. The cancellation policy is one of the most significant changes. We hope these changes will help expand the customer base for health insurance.

To learn more about the latest rules in health insurance, visit our website or call our toll-free number.

Health Insurance Companies Network Hospitals

Aditya Birla
Bajaj Allianz
Bharti Axa
Care Health
Future Generali
HDFC Health
IFFCO Tokio
Manipal Cigna
Niva Bupa
SBI Health
Star Health
Tata AIG
New India
Universal Sompo

Other Health Insurance Companies

Explore other top health insurers in India.

Frequently Asked Questions

Yes, as per the new rule by IRDAI, you can cancel your health insurance policy by giving a 7-day written notice to your insurer.
The CRC stands for Claim Review Committee, which is a three-member group, as mandated by IRDAI. Their main role will be to review the claim and make the decision.
A window in which policyholder can cancel their policy without paying any surrender charges.
The waiting period will be the same as before. It depends on the policy to policy.
If you claim within the first year of the policy, it might affect your eligibility for the cumulative bonus or discount on premium in the subsequent years. This is because these benefits are mostly rewarded for claim-free years.

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