Insurance vs. the Disabled OR Insurance for the Disabled?
The wait for insurance inclusivity.
In February 2023, the regulator IRDAI had mandated Insurance companies to offer annual health coverage to disabled, HIV-positive and mentally disabled people. The regulator had also directed insurers to develop inclusive insurance products for this purpose.
Despite this, the reality of the availability of insurance for disabled people remains dire. Insurers continue to limit life and health insurance coverage to those with benchmark disabilities, thus, going against the provisions of the law.
According to the Rights of Persons with Disabilities (RPWD) Act, 2016, people with disabilities have the right to equality, life with dignity and respect for his or her own integrity equally with others. Yet, even the websites, apps and processes of Indian insurers hardly comply with the accessibility standards required by the RPWD Act, 2016.
Insurance plays a major part in financially empowering people. And there is an undeniable link between financial and social empowerment, more so for people with disabilities.
Around the world, countries enable the disabled by doing far more through their social security systems. Here are some examples:
In Estonia, disabled working age adults are eligible for incapacity benefits, with varying payment according to the severity of the disability which goes towards medical costs, transport and other expenses not covered by health insurance or other benefits
In Germany, disabled children are automatically insured with their parents in the health insurance scheme without having to pay any additional costs. Children and students with disabilities are entitled to various rights, including wheelchair access, sign language translator as per individual circumstances.
In Japan, people with physical or mental disabilities are eligible for assistance. Adults with severe physical and mental disabilities are eligible for a monthly allowance, while families with children under 20 with physical and mental disabilities can receive monthly amounts depending on the severity of the disability. Retired employees with severe disabilities receive a pension 1.25 times that paid to a person without disabilities.
It is quite evident from these examples that India has much work to do in this regard, and both the public and private insurance companies have important roles to play. Making insurance available for purchase by the disabled is a crucial step towards financially empowering them, one which supplements building a reliable national social security system is to include EVERY citizen of India.
It is time for the insurance industry to seriously work towards being inclusive of the disabled not simply in words, but also in actions if we wish to see India accomplish its goal of Insurance for All by 2047.
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