| Insurance companies cannot reject claims of HIV positive policyholders who were HIV-negative on the date commencement of contract, proposes IRDA.
IRDA has issued a draft proposal guideline to provide insurance cover for persons living with HIV/AIDS (PLHA) in which it has proposed that insurance companies cannot reject claims of HIV-positive policyholders who were HIV-negative on the date of commencement of the contract. In such cases, insurance companies should have to apply same underwriting guidelines and claim settlement process.Also, the insurance regulator has proposed that insurance companies should have to renew such policies if request is made by the policyholders. In a circular, IRDA said, "With respect to those who are HIV-negative on the date of commencement of the contract and are, subsequently, found to be HIV-positive during the term of the policy, insurers shall not reject/deny any claim on such grounds." Insurance companies can provide various options in such cases like PLHA as a critical illness, providing a lump-sum on becoming HIV positive, conversion of lump-sum into annuity for life etc. IRDA said that insurance companies cannot deny life insurance cover to PLHA if it complieswith board-approved policy. The insurance regulator has proposed insurance companies to proceed with the existing products instead of formulating a niche product for PLHA. IRDA has proposed that minimum and maximum entry age for such policies should be 25 years and 45 years respectively. Under such policies, maximum sum assured for regular premium is Rs 10 lakh whereas for single premium it is Rs 20 lakh. The circular comes into effect from April 1, 2014. IRDA has given 15 days to insurance companies to share their views on the proposed guidelines. | 
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