Persons suffering from HIV/AIDS or other pre-existing illness will have to pay higher premium for life insurance, regulator IRDA said today.

Insurance Regulatory and Development Authority (IRDA) Chairman T. S. Vijayan said insurance companies will provide life cover to persons with pre-existing illness, but the pricing will be based on commercial considerations.

“The whole idea is the person may be having a disease, once the policy has started even if the person is having disease, he is not excluded. Obvious thing is pricing has to be different. That is the commercial decision left to the industry,” he told presspersons after a FICCI event here.

He said a few insurers have already introduced cover for HIV/AIDS infected patients. “I am sure more companies will bring policies,” Vijayan said.

The IRDA had in October come out with a draft circular asking all insurers to provide life insurance cover to HIV/AIDS patients.

The circular on policies for people with HIV/AIDS is likely come into effect from April 2014 and insurers would be required to put in place procedures for underwriting and claim settlement, and proposal form before that.

The circular also provides for health insurance products offered by life insurers for those who are HIV negative at inception of the policy and acquire HIV/AIDS after commencement of insurance policy.

With respect to such persons who are HIV negative at the commencement of the contract and subsequently found to be HIV positive during the term of the policy, the circular states that the insurers should not reject/deny any claim on such grounds and in all such cases, the underwriting guidelines and claims settlement guidelines applicable at the time of commencement should be applicable.

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