Health insurance premiums are set to rise with public sector insurance companies seeking a revision of rates on individual policies.
Market leader New India Assurance has already filed new rates for which it is seeking approval.
Mr. G Srinivasan, Chairman, New India Assurance, said, “Our present rates were fixed 5 (five) years ago & the old rates have not kept up with medical inflation. Our the company was successful in bringing down the ratio of incurred claims to premium from 104 per cent to 88 per cent due to measures such as having a ‘preferred’ provider network of hospitals that agree to the insurer’s schedule of rates.Our company would like to bring down further the incurred claims ratio to 80 per cent"
Also, rates have been hiked on group medi claim policies. But, unlike group policies that are customized products, individual health plans are standard over- the counter plans & need to be cleared by the regulator IRDA.
Insurers say that health insurance premium rates need to be revised because of IRDA’s insistence that all health plans be made renewable for a lifetime.
Although New India Assurance managed to generate a profit after tax of Rs. 205 crore for the half year ended September 2012, up 216 per cent from last year (2011), this is largely on the back of an investment income of Rs. 1,342 crore.
Health insurance premium Mumbai: Health insurance premiums will increase by the public sector insurance companies to review rates for individual policies.
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