The insurance regulator, Insurance Regulatory & Development Authority of India (IRDAI) issued an order for all general and health insurance companies, directing them not to increase premiums for senior citizens by more than 10% per year. If companies wish to raise premiums by this amount, then they will have to take approval from IRDAI. If the companies want to close the plan, they will have to take permission for the same. The aim of this order is to make insurance policies more accessible and hassle-free for senior citizens while preventing arbitrary premium hikes.
IRDAI took this step after it was brought to their notice that several health and general insurance companies had raised premiums for senior citizens. Premium amounts are typically determined based on expected insurance expenses, including policy sales and maintenance costs. These expenses are influenced by hospital claims, which comprises surgeries and treatments.
With IRDAI’s directive, insurance companies will no longer be able to raise premiums for senior citizens by more than 10% per year. For example, if a senior citizen’s annual premium is Rs 5000, the insurance company cannot increase the premium more than Rs 5500 in the following year.
The IRDAI has also asked the insurance companies to make a separate arrangement for the senior citizens and its information will be accessible on the company’s website.
