IRDAI may soon present a consultation paper on this. In this, a limit can be set on the increase in the premium of a health insurance policy.
Insurance Regulatory and Development Authority of India (IRDAI) is reportedly planning to set a limit on the annual increase in health insurance premiums. Reports suggest that the capping will apply to both product and portfolio levels. The move is expected to benefit policyholders, as currently, insurance companies increase premiums every year at their own discretion.ย
It has been observed that some insurance companies initially keep the premiums for health policies low but then increase the premiums every year as they wish. This results in an increase in premiums, making the policy very expensive for the customer in a few years.ย
10% Limit For Senior Citizens
Earlier this year, IRDAI had set a limit of 10 per cent for the increase in health policy premiums for senior citizens. Its purpose was to protect the elderly from an arbitrary increase in premiums.ย
However, experts believe that insurance companies can try to compensate for this loss by increasing the premiums of people below 60 years of age.
Consultation Paper Soon
IRDAI may soon present a consultation paper on this. In this, a limit can be set on the increase in the premium of a health insurance policy. Experts say that clear rules are necessary for pricing health insurance. This will affect the use of health insurance policies in India.ย
Rs 5 crore fine on Policybazaar Insurance Brokers
Earlier, the regulator imposed a Rs 5 crore penalty on Policybazaar Insurance Brokers for certain lapses and also cautioned against violating insurance norms.
Rs 3.39 crore penalty on Star Health Insurance
It imposed a Rs 3.39 crore penalty on Star Health and Allied Insurance for various violations of Information & Cyber Security Guidelines.
Meanwhile, the regulator has a framework mandating appointment of an internal insurance ombudsman for insurers to address complaints involving claims up to Rs 50 lakh.
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