IRDAI has started investigation against 5 private insurance companies. IRDAI has taken a tough stand on expensive health premium and claim rejection case. The country’s 5 private insurance companies had been on the radar of IRDAI (Insurance Regulatory and Development Authority) for a long time. Now IRDAI has started investigation on all these. If found guilty in the investigation, IRDAI can also impose penalty on these companies. Let us know that the investigation is already underway on Star Health Insurance.
Actually, the allegation on them is that these companies have increased the health insurance premium in the entire country in a uniform manner. It was a kind of cortalization. Apart from this, their claim rejection is also very high. Both premium growth and claim rejections are around 30 per cent. The Finance Ministry is very angry with the attitude of private insurance companies on insurance companies particular. The Finance Ministry had directed IRDAI to investigate these companies.
According to information received by government sources, health insurance companies are making an improper increase in the annual premium despite the low claim settlement ratio, for which strict punitive action can be taken by the regulator. Sources said without naming the firms that some private insurance companies are expected to have regulatory action in a month. According to the source, the IRDA has already issued a show cause notice to several private insurance companies on the basis of concrete cases and one or two companies will soon be punished to set an example for the entire industry.