NHRC issues notice to IRDAI over alleged insurance bias against families of disabled children

The National Human Rights Commission (NHRC) has issued a notice to the Insurance Regulatory and Development Authority of India (IRDAI) over allegations that families of children with hearing and speech disabilities are facing difficulties in obtaining life insurance policies.

The rights panel took cognisance of a complaint filed by the president of Laghu Udyog Bharati , Ludhiana , which alleged that insurance companies often deny coverage or impose restrictive conditions solely due to the presence of disability in the family. According to the complaint, such practices result in financial insecurity and deny specially-abled children equal access to financial protection.

A bench of the Commission, headed by member Priyank Kanoongo , invoked provisions of the Protection of Human Rights Act, 1993 to examine the matter, observing that the allegations prima facie indicate a potential violation of human rights.

The NHRC has directed IRDAI to conduct a detailed inquiry into the claims and submit an action taken report within 15 days. The notice seeks clarification on whether insurers are engaging in discriminatory practices or deviating from regulatory norms while underwriting policies involving persons with disabilities.

The complainant has urged the regulator to frame guidelines ensuring that disability is not treated as grounds for denial of life insurance, and to promote inclusive insurance products catering to specially-abled individuals. The plea also calls for increased awareness among insurers to uphold principles of equal financial access.

A copy of the notice has been forwarded to the Department of Financial Services under the Finance Ministry for necessary action.

The case is expected to draw attention to inclusivity gaps in the insurance sector and may prompt regulatory intervention to ensure equitable access to financial services.