Information to the public on revision in Health Insurance Premium

Last updated: 04 December 2020

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Recent media reports have suggested significant hikes in health insurance premiums due to regulatory changes. However, it's clarified that insurers were only permitted a one-time, up to 5% increase on some products to align with new exclusion guidelines. As of September 30, 2020, only 55 out of 388 products saw such an increase. Furthermore, only 5 products experienced premium revisions beyond 5% during the year up to November 30, 2020, as part of standard product modifications based on claims experience.

There are some reports in the media about hike in health insurance premium rates by general and health insurers. Some of the news items attributed the increase in health insurance premiums to certain recent regulatory initiatives taken by IRDAI. In this regard it is clarified that insurers were permitted to change the base premium upto +/- 5 per cent of originally approved premium rates in order to comply with the guidelines on standardization of exclusions as a onetime measure for seamless tran

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FAQ :

While there have been media reports of premium hikes, the increase has been limited. Insurers were permitted a one-time, up to 5% adjustment for some products to comply with new guidelines. Only a small fraction of products saw this change.

The changes were primarily a one-time measure to allow insurers to adjust base premiums by up to 5% to comply with new guidelines on the standardization of exclusions.

As of September 30, 2020, premiums were increased by up to 5% on only 55 out of 388 products.

Yes, the Authority cleared revisions beyond 5% for only 5 health insurance products during the year up to November 30, 2020, as part of periodical product modifications based on claims experience.

The initial up to 5% adjustment was a one-time measure for seamless transition. Further revisions beyond 5% are part of periodical product modifications based on claims experience.

Notification No : 03-12-2020
Source : https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo4300

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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