Capping Premium
IRDAI caps premium on health insurance products for senior citizens at 10%
This story was originally published at 14:00 IST on 31 January 2025
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MUMBAI – The Insurance Regulatory and Development Authority of India has asked insurers not to charge premium rates more than 10% annually for senior citizens with immediate effect, it said in a circular Thursday. This was after the regulator observed that high premium rates were being offered to senior citizens for some health insurance products.
IRDAI has asked insurers to consult it before charging a premium of over 10% per annum and withdrawal of individual health insurance products offered to elderly citizens. Insurance companies are required to give wide publicity to the various measures taken for the benefit of senior citizens while offering health insurance policies, the regulatory body said.
"The premium rate is mainly based on estimated outgo and the expenses, including acquisition costs incurred by the insurance company for acquiring and servicing insurance policies. The claims outgo is largely dependent on the amounts charged by the hospitals for various treatments," the insurance regulator said. Therefore, it urged insurers to take necessary steps for common empanelment of hospitals and negotiate rates in line with Pradhan Mantri Jan Arogya Yojana, a health insurance scheme funded by the government with a cover of INR 500,000 for under-privileged families.
The insurance regulator has also asked all insurers to establish a separate channel to address the health insurance related claims and grievances of senior citizens. End
Reported by Christina Titus
Edited by Nishant Maher
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