Health insurance companies are likely to hike the insurance premium by 10 per cent starting April 1. The companies had kept the premiums unchanged keeping in mind the coronavirus pandemic.
The pandemic has highlighted the need to have sufficient health and life insurance cover. High hospitalisation costs during the pandemic forced many to take tough decisions of choosing between their loved ones and the future of their families. Having the proper coverage can help in many life situations.
But, with the increase in coronavirus claims worth thousands of crores and the Insurance Regulatory and Development Authority of India (IRDAI) standard rules, the companies are forced to hike the prices.
Most companies revise premiums at the beginning of the new financial year. In such a situation, the companies are allowed to revise the premium of health insurance policy from April 1.
What led to this rise?
The insurance regulator has included many serious diseases in the medical insurance policy such as mental problems, genetic diseases, neuro-related disorders, and psychological diseases. Therefore, the inclusion of these serious illnesses is bound to increase the premium.
Another reason is the coronavirus claim of thousands of crores which is adding an additional burden on the companies and the recovery for the same will be done by increasing the premium. Insurance companies have received claims worth Rs 14 thousand crores, out of which companies have settled Rs 9 thousand crores. An increase in medical costs will also lead to a higher premium.
Meanwhile, if you are unhappy with your health insurance policy's features or premium or insurer's claim settlement record or benefits, then you can switch to another insurer without losing benefits. Up until early 2011, portability of health insurance was not an option, but it was the insurance regulatory IRDAI that introduced the portability norms, giving policyholders the choice to switch insurers.