The Government of India addressed concerns regarding high health insurance premiums in response to a query in the Lok Sabha. The Ministry of Finance clarified that health insurance premiums are determined by individual insurers based on actuarial principles and factors like age, morbidity, inflation, interest rates, and product features. The Insurance Regulatory and Development Authority of India (IRDAI) has implemented regulations to ensure that premiums are fair, not excessive or discriminatory, and offer value for money. Insurers are also encouraged to reward claim-free years through options like a “No Claim Bonus,” which may lower premiums or increase the sum insured. Additionally, the number of senior citizens who have taken health insurance coverage of Rs. 5 lakh has steadily increased over the past five years, with figures showing a rise from 2,86,530 in 2019-20 to 9,03,934 in 2023-24.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1036
TO BE ANSWERED ON MONDAY, DECEMBER 2, 2024/AGRAHAYANA 11, 1946 (SAKA)
HIGH PREMIUMS OF HEALTH INSURANCE
1036. Shri Adhikari Deepak Dev
Will the Minister of Finance be pleased to state:
(a) whether the Government is aware that health insurance premiums are exorbitantly high during the current financial year;
(b) if so, the reasons therefor; and
(c) the details of senior citizens who have taken health insurance coverage of Rs. 5 Lakh during the last five years and the current year, year-wise?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b): IRDAI has informed that insurance companies design and price the health insurance product based on Board approved underwriting policy of respective insurers, which considers actuarial principles and parameters like age, morbidity data, inflation, interest rates, product features , for determining the premium.
Further, IRDAI has issued ‘IRDAI (Insurance Products) Regulations,2024’ dated 20.03.2024 and ‘Master Circular on IRDAI (Insurance Products) Regulations 2024-Health Insurance’ dated 29.05.2024 containing provisions to ensure that the health insurance premiums are not exorbitantly high. These regulations inter- alia stipulate that insurers will ensure that their premium rates are fair and not excessive, inadequate or unfairly discriminatory and provide value for money. Also, the insurers may reward the policyholder for claim free year by giving an option at the time of renewal of policy to choose the ‘No Claim Bonus’ either by increasing the sum insured or decreasing the premium amount.
(c): The number of Senior Citizens who have taken health insurance coverage of Rs.5 Lakh during the last five years, as furnished by Insurance Information Bureau of India (IIB), are as below:
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | |
| Number of senior citizens who have taken health insurance cover of Rs. 5 lakh | 2,86,530 | 5,25,638 | 6,45,214 | 8,43,633 | 9,03,934 |
