Can an insurer reject my application because of my disability?

No. Under IRDAI rules and the RPwD Act 2016, insurers cannot reject you solely based on a physical disability if you are eligible otherwise.

Is there a waiting period for the Divyang policy?

Yes, there is a 45-day waiting period for natural death. However, accidental death is covered from the very first day of the policy.

Do I need a medical check-up for this policy?

Most likely, yes. Insurers use medical tests to determine the premium. Your UDID card also helps them assess the risk accurately.

How much GST do I pay on the premium?

Since September 2025, GST on individual term insurance is 0 percent. You only pay the base premium amount quoted by the insurer.

Is the UDID card mandatory for the Divyang policy?

Yes. The UDID card is the primary proof for your disability percentage and is required by insurers to process Divyang-specific plans.

Can I save tax with a Divyang term plan?

Yes. Premiums paid for the Divyang policy are eligible for tax deductions under Section 80C of the Income Tax Act.

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IRDAI Divyang Policy: Your Legal Right to Term Insurance Coverage

Physical disability is no longer a valid reason for insurance rejection. Here is how the Divyang policy and new GST rules protect your family.

3 min read

OneAssure Team

April 13, 2026

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

You applied. You waited. Then came the rejection. For years, many young Indians with physical disabilities faced a closed door when asking for term insurance. Agents would often say the risk is too high. This left families without a safety net. That era is over. The Insurance Regulatory and Development Authority of India (IRDAI) has changed the rules. They introduced the Divyang policy. It is a standard life insurance plan. Every life insurer in India must offer it. No excuses allowed.

The Law is on Your Side

The Rights of Persons with Disabilities (RPwD) Act 2016 is your shield. It clearly states that you cannot be discriminated against in matters of insurance. If you have a steady income and a disability, you have a right to protection. Insurers cannot refuse your application solely because of a physical disability. They must assess your health fairly. If they reject you, they must provide a valid medical or actuarial reason in writing. Simply being a person with a disability is not a reason. You can challenge such rejections through the Insurance Ombudsman.

The UDID Card: Your Golden Ticket

Your Unique Disability ID (UDID) card is now the most important document for your application. It proves the nature and percentage of your disability. Insurers use this to skip repetitive paperwork. If your disability is 40 percent or more, this card simplifies everything. Ensure your UDID is updated. It helps the insurer calculate the right premium for you. Without it, the process becomes slower. Keep it ready alongside your PAN and Aadhaar.

Waiting Periods and Accidental Cover

The Divyang policy has a specific 45-day waiting period. This is standard. If a natural death occurs within these 45 days, the insurer might only return the premiums paid. But there is a big exception. Accidental death is covered from day one. If an unfortunate accident happens even an hour after the policy starts, the full sum assured is paid to the nominee. After 45 days, the full life cover kicks in for all causes of death. This is a fair trade-off for getting a guaranteed plan.

Pricing and the 2025 GST Update

Price is always a concern. Earlier, term insurance carried an 18 percent GST burden. This made premiums heavy for young earners. Effective September 22, 2025, the GST on individual term insurance has been reduced to 0 percent. This is a massive win. If your base premium is ₹10,000, you pay exactly ₹10,000. No hidden taxes. This makes the Divyang policy much more affordable. You can also claim tax deductions under Section 80C for the premiums you pay. It helps you save up to ₹1.5 lakh in taxable income every year.

Choosing Your Coverage and Payments

Most standard Divyang plans offer a sum assured starting from ₹5 lakhs. Some go up to ₹25 lakhs or more depending on the insurer. If you are 28 and earning ₹60,000 a month in a city like Pune, a ₹25 lakh cover is a good starting point. You can choose to pay monthly or annually. If your cash flow is tight, go for monthly payments. It feels like a small subscription for a large peace of mind. Just ensure you never miss a payment. A lapsed policy is a lost safety net.

Transparency and Medical Disclosure

Do not hide anything. Be honest about your medical history. Full disclosure is the only way to ensure a smooth claim process. If you hide a condition, the insurer can reject the claim later. This will leave your family in a lurch. Mention every surgery, every regular medication, and the exact nature of your disability. Modern underwriting is more inclusive than before. They look at your ability to work and your lifestyle. Being transparent today prevents a tragedy for your family tomorrow. Platforms like OneAssure can help you compare how different insurers view specific disability types so you find the most welcoming partner.