increase in renewal premium
01 Oct, 2020
by shreyas
In the name of standardization, policy premium will be hiked for renewal? Have experienced unwarranted hikes everytime there are IRDA changes.
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01 Oct, 2020
shreyas
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02 Oct, 2020
We breathe insurance :)
You can look at the health insurance premium chart of the insurance company to understand how premiums rise with age. Unfortunately, the revision of this grid, based on the claims experience of the insurance company cannot be predicted.
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Hello Shreyas,
In our view, the standardization is genuinely good for the customer in the long run. Insurers will have to factor the increased scope of coverage - extending cover for Mental Illnesses, Internal Congenital disease, providing cover for modern treatments like Oral Chemo, Stem cell therapy will have a direct impact on the financials of the insurance plan and the insurance company. This will hence result in hike in premiums for sure to keep the insurance plan and insurer viable.
Yes, premium hikes look unwarranted for sure. We have all personally experienced how premiums can just shockingly zoom in a certain year. Here's the story from the insurer's point of view - just to help you get a better understanding of the problem. Anything that has a new impact on their financials will result in unavoidable increase in premiums (IRDAI allows it)
Lastly, every premium hike an insurer is required to send you three months prior notice informing you about the hike, so that you have a choice of porting from the product to another alternative that is available. Of course, we agree it may not practical to be able to keep jumping insurers every time there is a hike. Just thought will let you know about this option.
Hope this helps.
Regards,
Team Beshak.