Insurance companies will no longer be able to increase more than 10 % annually in the Health Insurance Premium of the Sitient Citizen. Insurance Regulatory and Development Authority of India (IRDAI) has given this instruction by releasing a press release on 30 January. The move aims to curb the increase in health insurance premium for senior citizens and reduce their financial burden. The release said that this decision has been taken in view of the age of the elderly and healthcare needs.
This rule has been brought after a sharp increase in health insurance premiums. The rapid increase in health insurance premium was especially challenging for senior citizens and limited income people. According to IRDAI’s instructions, if an insurance company increases more than 10 % in the health insurance premium for senior citizens or a health insurance product withdraws, then the insurance regulator must be consulted before that.
This will not only ensure transparency, but will also prevent those sudden changes, due to which senior citizens have to face trouble. Apart from this, insurance companies will also have to promote measures that they do for the benefit of senior citizens. Its purpose is to spread awareness among the scenery citizens for important facilities related to health insurance.
Health insurance companies have also been instructed to work towards improving the package rate to make the hospital empenel standard and control the cost. IRDAI says that he will keep an eye on the insurance market.