IRDAI asks Insurance Companies to include "genetic disorder" in policies

In a notification issued on 19.03.2018, the Insurance Regulatory and Developing Authority of India (IRDAI) has directed all insurance companies to remove “ Genetic Disorders” from the list of exclusions in new health insurance policies issued by them. The notification stated that “ & hellip all insurance companies offering contracts of Health Insurance are hereby directed that no claim in respect of any existing health insurance policy shall be rejected based on exclusions related to & lsquo Genetic Disorder'. All insurance companies have been directed not to include & lsquo Genetic Disorders' as one of the exclusions in new health insurance policies issued in respect of all their existing health insurance policies and also in the new policies introduced and/ or filed under the provisions of directions on policy Filing under Health Insurance Business” . Moreover, the notification was issued in view of the Delhi High Court judgment declaring the practice as unconstitutional discrimination in health insurance against individuals based on their genetic disposition or genetic heritage, in the absence of appropriate genetic testing and laying down of intelligible differentia. Thus, the Court had categorically held that the right to avail health insurance is an integral part of the right to health and healthcare, as guaranteed under Article- 21 of the Constitution of India. It, therefore, opined that the exclusionary clause of “ genetic disorders” in insurance policies was extremely broad, ambiguous and discriminatory and hence in violation of Article- 14 of the Constitution of India.