Health insurance likely to be more expensive, premium also increased

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By: Jeet Ghosh

Last Update: 2021-04-16 15:46:53 IST

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Premiums for health insurance policies were increased by up to 50 percent on behalf of some insurance companies. Concerned with this situation, IRDA has also warned all insurance companies not to change the old policy merely to increase the premium.

The first round of Corona has increased the need for health insurance in the country. But customers are also paying a higher premium on this than before. Now that the country is facing a second wave of Corona, customers are worried that health insurance may be expensive. The main reason for this is that during the last one year, due to the Corona crisis, insurance companies have had to pay a large number of claims. By the way, the experts in the insurance sector are also telling that during the Corona period, there is a lot of awareness about health insurance in which further improvement can be done. This is expected to increase the sales of health insurance.

According to a policy market study, only four per cent of claims payments made by companies in April 2020 belonged to Covid-19, which has now gone up to 40 per cent. Information about this has not been provided by the companies. But Irda, the insurance sector regulatory agency, has received such information that premiums of health insurance policies were increased by up to 50 per cent on behalf of some insurance companies. Concerned with this situation, IRDA has also warned all insurance companies not to change the old policy merely to increase the premium.

According to Sanjay Dutta of ICICI Lombard General Insurance, the corona epidemic has drastically changed most of the business. What will be the impact of this on the premium of health insurance, it will be known in future. Right now it is difficult to say anything about this due to uncertainty. 

Gurdeep Singh Batra, head (retail underwriting), Bajaj Allianz General Insurance, says insurance companies have had to pay a lot of claims during the Corona era. According to Shashank Chafekar, chief distribution officer of Manipalcigna Health Insurance Company, the cost of treatment is increasing and it is going to increase further. Medical inflation (increase in prices of services and products related to the medical sector) is a major reason why health insurance policies have become expensive. The cost of treatment in hospitals has increased, due to Covid-19 companies have to pay more claims.

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