The insurance company will have to take approval before closing the targeted personal health insurance products.
Insurance regulator IRDAI has provided great relief to Senior Citizen (Senior Citizen). On the premium of the annual Health Insurance Policy, now they will have to pay maximum up to 10 percent more premium. That is, insurance companies will not be able to increase the premium of the annual health insurance policy of senior citizens more than 10 percent. According to Business Today news, IRDAI has said that insurance companies will have to take approval before closing personal health insurance products targeted for senior citizens.
Companies will have to take approval in these matters
The insurance regulator says that if the proposed increase in the premium is more than 10% annually, then approval will have to be taken. Also, companies will have to take approval in case of withdrawal of personal health insurance products given to senior citizens. IRDAI says that senior citizens have limited sources of income. Senior citizens are the most affected when there is a huge increase in health insurance premiums. The case is attracting the attention of IRDAI and is a regulator concern. Sudden changes can be prevented, so that senior citizens can be deprived of essential coverage.
Niman also gave these instructions
The IRDAI stated that the premium rate is mainly based on expenses including the amount of estimated claims and the acquisition costs incurred by the insurance company to acquire and serve the insurance policies. Claim expenditure depends largely on the amount taken by hospitals for various treatments/surgeries. IRDAI has directed insurance firms to provide a joint panel facility of hospitals and set up a package rates made similar to the Pradhan Mantri Jan Arogya Yojana.
Need to create a dedicated channel
The insurance regulator said that unlike the Pradhan Mantri Jan Arogya Yojana, where hospitalization expenses are centrally interacted for package rates and thus standardized in hospitals. There is nothing like this in the case of health insurance products. Due to this, the cost of hospitalization is increasing, due to which the cost of claims under health insurance products offered by insurance companies is increasing. IRDAI said that in the regulatory structure it is necessary that all insurance companies should create a dedicated channels regarding matters related to senior citizens. This information should be easily available on the insurer’s website so that it can be easily accessed.
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