Health insurance would have been expensive? Now every year it will not increase so much premium! Cap may look
In an attempt to keep the Health Insurance (Health Insurance) accessible to the common people and keep the insurance industry sustainable, the Insurance Regulatory and Development Authority of India (IRDAI) is now preparing to control the annual increase in health insurance premiums. IRDAI is considering introducing a policy in which insurance companies will be allowed to increase a limited increase in health insurance premiums every year according to medical inflation. This limit may apply at individual insurance products as well as the company’s entire portfolio level.
Why did this decision need to be needed?
According to the news, now many insurance companies initially give low premium policies, but suddenly increase the rates after a few years. This increases the financial burden on customers and limits options with them. Currently, only senior citizens’ premiums are prohibited by an increase of more than 10% annually. There is no clear limit for other customers.
Health Insurance contributed in FY 2025 is estimated to reach 40% in general insurance premium. The rising cost of health services after the Kovid-19 epidemic has also increased the insurance premium, making the role of monitoring and intervention of IRDAI more important.
Companies dependence on health insurance
New India Assurance: About 50% of the total premium from health insurance
ICICI Lombard: about 30%
Go Digit General Insurance: only 14%
These figures show that health insurance has now become an important source of revenue of companies.
Cap is already in force for senior citizens
Earlier this year, IRDAI limited the annual premium growth for senior citizens to 10%. However, it was then feared that insurance companies may put this burden on the customers of the remaining sections.
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