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Health insurance renewal

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14 Nov, 2022 by  KNV Nambudiri

Health insurance renewal premium is quoted at nearly 100% more than amount paid previous year, because the insured moved into the 61 years age group. Is this justified? Sadly, there is nothing the customer can do - it is a 'take-it-or-leave-it' situation. A marginal increase of 25% because of change to the higher slab, is, I think, reasonable. Shouldn't the IRDA get involved to fix such unreasonable demand with no choice for customer but to accept... I can't even think to port this to another insurance company as there will be innumerable obstacles/hassle to convince the new insurer of present health condition, which has only gone bad from the time the original insurance was taken...

Health Insurance

1 Answer

16 Nov, 2022
MBA | 5 years experience
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Dear Mr Nambudiri,

I understand your concern. The increase in premiums is due to reasons that are beyond control of IRDA. Two of them are

1) High claims due to Covid

2) Medical Inflation i.e. cost of hospitalization going up.

IRDAI is taking multiple steps to safeguard interest of the policy holders. Like for eg. Modern Treatment were not covered untill few yrs ago. They are now. There is 8yrs moratorium introduced i.e. after 8 yrs taking a policy which a claim can not be denied (unless for proven fraud). Limited number of consumable items earlier insurers use to define their own list. Soon a online portal is likely to start by IRDAI that will bring down distribution cost or commissions. BTW Pandemic as such find exclusion under health insurance however IRDAI stepped in and said insurer's will over it. Imagine if Covid remained as part of exclusion list.

Your concerns are completely valid but IRDAI may be cannot do much in terms of plan pricing. The 18% GST and lack of regulator for hospitals will keep the pressure on the policy holders.

Only way to be ahead on this is pay long term premium for 2 yrs or 3 yrs. Look if your policy offers some discounts at renewal..thereafter plans that offer 10-20% discount on renewal provided the specified criteria is met.

I have tried to answer to the best of my knowledge...hope it helped.


Rohit Dhingra

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