Why my premium ism is increased despite no claim
Why premium is increased this year in health policy(HDFC ERGO) despite no age bracket change or no claim is made
Most of the Insurance companies have revised their premium rates
On account of, amendments in respect of provisions of Guidelines on Standardization of Exclusions in Health Insurance Contracts and Modification Guidelines on Standardization in Health Insurance were carried out by the IRDAI In February 2020.
This has been a question for a while. I would like to take the opportunity and explain the perspective from insurance company.
The basic fundamental of health insurance is pooling money from lot of people and pay to those people who are in need.
Your age bracket may have not changed and you might not have made a claim. However, the people like you , like us are also covered in the same product. The whole product may have incurred more hospitalization and hence the company has increased the price for everyone. The company does not charge for individual, they charge everyone some part for every claim. However, companies differentiate price for older and younger by age bands, if they will not do this then the average price for older people (who are more at risk compared to younger ones) will fall and it will increase for younger people. This will make it less popular among younger people.
I would like you to be rest assured with the premiums companies are charging as they are approved by the regulator.
Insurance is basically a system to spread the risk over several persons who are insured against the risk. It works on a principle to share the loss of each member of the society based on the probability of loss to their risk. It works as a method to provide security against losses to the insured.
There are multiple factors which trigger the increase of premium across the Board by Insurance Companies, as far as Retail Customers like you and e are concerned. I will try to list of few factors here :
(1) Increase in the Re-insurance rates Globally
(2) Increase in the Government Taxes and Cess
(3) Increase in Claims Experience Globally or Countrywise or Companywise.
(4) Increase in Inflation and Health Management Costs
(5) Adveres Claims globally due to Pandemics like Covid 19 etc..
So these factors can also play a very integral role directly or indirectly for the rise in Premium still even if the Person has not claimed or the Age bracket has not changed. But however, there is one silver lining that the Insurance Companies cant increase the rates as per their whims and fancies. They have to present an appropriate scenario and get an approval from the Insurance Regulator IRDAI before the proposed changed premiums are made effective.
Hope I was able to provide a satisfactory answer to your query.
Thanks & Regards,