The insurance regulator IRDAI has suspended its earlier order asking insurers to  cover genetic disorder diseases after the Supreme Court stayed the Delhi High Court verdict that had favoured providing covers to such diseases.

Delhi HC earlier in its judgement had directed IRDAI to re-look at the exclusionary clauses in the insurance contracts and ensure that insurance companies do not reject claims on the basis of the exclusions relating to genetic disorders.


On 27th August, 2018, the SC while hearing special leave petition has granted stay on the operation of the Delhi HC until further orders.


“In view of the above stay granted by the SC, IRDA’s earlier circular dated 19th March, 2018 stands abated until further orders,’’ said IRDAI.


However, the claim settlement in respect of all existing policies will  be as per the terms and conditions of the policy contracts as approved by the IRDAI in accordance to the applicable regulatory framework, said the insurance regulator.


Meanwhile, IRDAI has asked general and health Insurers to grant 60 days grace period in respect of all health insurance policies due for renewal up to 30th September, 2018 in the State of Kerala and flood affected districts in the State of Karnataka.


Further, in respect of deposits / premiums collected for issue of health insurance policies during the period of August, 2018, where such deposits/premiums collected could not be converted to policies within the stipulated time as prescribed in regulations, insurers are allowed to convert such deposits into policies by 30th September, 2018.


“Where the premium collected is not converted to policies by 30thSeptember, 2018, such premiums shall be refunded by duly complying with the concerned norms,’’ said IRDA.