1 January

Genetic Disorder no more the ground for rejection of claims: IRDAI

Category: Moter insurance

The Insurance Regulatory and Development Authority has asked all the insurers to not reject claims based on Genetic disorders, also, they have asked companies to not include genetic disorders as one of their exclusion principles. This, of course, comes after the ruling of Delhi High Court on the issue which termed it as the violation of article 14 of the constitution of India.

The court has directed all insurance companies offering health insurance that no claim in respect of any existing health insurance policy shall be rejected based on exclusions related to ‘Genetic Disorder’. 

The court termed the clause of exclusion of genetic disorders as, too broad, ambiguous and discriminatory. All of this comes in the backdrop of a case in the courts, namely, United India insurance versus Jai Prakash Tayal.

The court directed IRDAI to re-look the exclusionary clauses in insurance contracts and ensure that insurance companies do not reject claims on the basis of exclusions relating to genetic disorders. 


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