IRDAI clarifies premium hike

The Insurance Regulatory and Development Authority of India has clarified a recent hike in health insurance premium rates by general and health insurers in a statement. “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 standardisation of exclusions as a onetime measure for seamless transition of existing products to ensure viability and sustainability. As on 30 September 2020, out of 388 products, premiums were increased by general and health insurers upto 5 percent of the then prevailing rates only in case of 55 products,” stated a press release.

Further, the Authority has cleared revision in premium beyond  five percent in respect of only five health insurance products of general  or health insurers during the year up to 30 November 2020 as part of periodical modification of their respective products, based on the incurred claims experience.