IRDAI Rules Every Policyholder Should Know in 2025

1.Faster Claim Processing for Peace of Mind

One of the biggest reforms this year is the standardisation of the claim settlement timelines. Under this rule, insurers are mandated to process or reject claims within 30 days of receiving all the necessary documents.
If any delay happens in this aspect, insurers are expected to pay a penalty interest to the policyholder. This ensures that policyholders are not affected by potential late reimbursements during medical emergencies.

2.Mental Health Coverage Is Now Compulsory

IRDAI has officially made it quite clear that mental health is no less important than physical health. With this rule in place, all insurers are required to include coverage for mental illness under their health insurance plans.
Conditions like depression, anxiety, and bipolar disorder are now covered under the new rules, making this a huge step toward promoting mental well-being and removing the stigma around it.

3.No Claim Rejections After 8 Years

Insurers cannot reject any claims after an individual has held a health policy for eight consecutive years. This cannot be done based on any pre-existing conditions or misinformation. The eight-year time here is called the “moratorium period.”
The rule also rewards loyal policyholders, providing long-term security and greater trust in your insurer.

4.Simplified and Clear Policy Wordings

Many new policyholders can find insurance policy documents confusing. However, now, thanks to the new rules, IRDAI has directed all insurers to use simple, easy-to-understand language.
This helps policyholders understand what is covered under the policy, what is not, and how to make a claim. This rule will also help reduce any potential disputes.

5.Health Insurance Portability Made Easier

If policyholders want to switch insurers but are concerned about losing their waiting period benefits, a new rule is now in place to help them.
This rule helps you port your health insurance policy without losing the benefits you’ve earned. Such benefits might usually include reduced waiting periods for pre-existing conditions. As a result, policyholders have more flexibility and freedom.

6.Modern Treatments Are Now Covered

One cannot deny that health technology is advancing fast, and with the rules in place, IRDAI wants the policies to keep up with this advancement. 
This is why the new rules specify that treatments like robotic surgeries, oral chemotherapy, and stem cell therapy must now be covered by insurers.

7.Shorter Waiting Periods for Pre-existing Diseases

Before these rules came into place, waiting for pre-existing disease or PED coverage used to take close to four years. Now, under the IRDAI rules, this has been reduced to three years or less.
As a result, you gain faster access to coverage for conditions such as diabetes, hypertension, or asthma.

8.Faster Complaint Redressal Systems

If you are unhappy with your insurance company, the IRDAI rules make it easier to file grievances online, through a 24/7 portal.
IRDAI is also keeping a close eye on companies with frequent complaints to ensure greater accountability and support for policyholders.