Health insurance policyholders are seeing their renewal premiums go up by 5-100% because of the wider coverage of the insurance plans, reported The Times of India
Most insurance companies have raised the premium rates on health policies after the insurance regulator ordered them to widen the scope of coverage and standardise conditions for exclusions. While the policies are offering wider coverage, the flip side is that for some customers, the policies are becoming unaffordable.
A second reason for price increases is the discontinuation of a product line. This forces customers to switch to other policies, which are invariably costlier.
“Another issue has also been bank mergers. We have seen policyholders migrate from group health covers sold by their old bank to an individual retail health policy that could be more expensive,” said an official at National Health Insurance.
Amit Chhabra, business head (health) at Policybazaar.com, said, “Usually, insurers have age slabs of 5-10 years. Another reason could be an addition of a family member to the policy — like a newborn child. Then once in few years, there could be a price revision.”
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