Insurance Regulatory and Development Authority of India
There are some reports in the media about hike in health insurance premium rates by general and health insurers. Some of the news items attributed the increase in health insurance premiums to certain recent regulatory initiatives taken by IRDAI. In this regard it is clarified that insurers were permitted to change the base premium upto +/- 5 per cent of originally approved premium rates in order to comply with the guidelines on standardization of exclusions as a onetime measure for seamless transition of existing products to ensure viability and sustainability. As on 30th September, 2020, out of 388 products, premiums were increased by general and health insurers upto 5% of the then prevailing rates only in case of 55 products.
Further, the Authority has cleared revision in premium beyond 5% in respect of only 5 health insurance products of general / health insurers during the year upto 30th November, 2020 as part of periodical modification of their respective products, based on the incurred claims experience.