Kathmandu. Indian insurance regulator IRDAI has given a big relief to senior citizens. IRDAI has curbed the actions of insurance companies that increase the annual premium of health insurance indiscriminately.
IRDAI has now made it mandatory for senior citizens to pay up to 10 percent more premium on annual health insurance. Along with this, insurance companies will not be allowed to increase the premium of senior citizens’ annual health insurance plans by more than 10 percent. Earlier, companies had been increasing premiums by more than 10 percent on their own.
IRDAI has also made it mandatory for insurance companies to seek approval before discontinuing individual health insurance plans targeting senior citizens.
The insurance regulator has stated that approval is required if the proposed premium exceeds 10 percent per annum. In addition, the company will have to seek approval when withdrawing individual health insurance products offered to senior citizens.
According to IRDAI, senior citizens have limited sources of income. ‘Senior citizens are the most affected when health insurance premiums increase drastically. This issue is attracting the attention of IRDAI and has become a matter of regulatory concern,” the IRDAI said in its instructions to insurance companies, adding that “sudden changes in premiums may prevent senior citizens from getting the coverage they need.”
The IRDAI has directed that premium rates be determined primarily on the basis of the estimated claim amount and the expenses incurred by the insurance company in obtaining and servicing the insurance policies, including acquisition costs. Claims expenses largely depend on the amount charged by hospitals for various treatments and surgeries.
The IRDAI has also directed insurance companies to establish negotiated package rates similar to the Pradhan Mantri Jan Arogya Yojana to facilitate a joint panel of hospitals.
