India insurers relax underwriting rules — short window

Aditya Shah flagged a short-term market move on X reporting that several Indian health insurers are issuing policies for previously rejected illnesses, waiving pre-policy tests and not increasing premiums for declared pre‑existing conditions through March 31. (x.com) IRDAI’s consolidated master circular on health products stripped 55 earlier circulars and mandated standardised product rules, including measures to speed up issuance and clarity on underwriting that insurers say has changed operating norms. (taxguru.in) The regulator reduced the mandatory waiting period for declared pre‑existing conditions from four years to three years and shortened the moratorium on contestability to 60 months, measures that materially alter underwriting risk windows for new business. (moneycontrol.com) IRDAI guidance also bars insurers from raising renewal premiums solely because a policyholder develops a new illness, a rule insurers cite when saying they will not increase charges for declared pre‑existing conditions at point of sale. (paybima.com) Group/employer health schemes commonly do not require individual pre‑policy medical tests, enabling corporates to onboard higher‑risk lives faster — a distribution channel likely targeted during any short underwriting relaxation window. (bajajfinservmarkets.in) The March‑31 deadline aligns with IRDAI advisories asking insurers to keep branches open over the financial‑year end, which concentrates policy issuance and administrative activity in the last days of March. (business-standard.com) Recent high‑profile disputes over claim denials — for example publicised social‑media coverage and insurer responses around a ₹61 lakh cancer claim — show heightened scrutiny on underwriting and claims handling that insurers must factor into any temporary loosening of rules. (livemint.com)