The insurance regulator IRDAI has asked all health insurance companies to NOT increase health insurance premiums for senior citizens by more than 10% per annum.
Also, insurers would now need to take prior permission from IRDAI if they need to increase the premium by more than 10% or if they plan to withdraw any existing senior citizens’ insurance plan.
While it is normal for health insurance premiums to increase with age, the insurance regulator has (rightly) acknowledged that there have been many cases of a steep hike in health insurance premiums for the elderly and that it impacts them the most.
All in all, a good move by IRDAI for the benefit of Indian Senior Citizens. I just hope the insurers don’t find ways to get around this rule in innovative evil ways (by say having a bigger starting premium itself, etc.).
Also, I hope the Govt. is wise enough to announce something in the coming Budget 2025 to incentivize and subsidize the health insurance premiums for the Indian elderly.
You can read the full circular on the IRDAI website here.
It’s a good initiative but insurers work around this rule by a loophole. They discontinue an existing product and offer to transfer to a “new” product with more than 50% higher premium. Only difference seems to be a different name and almost same features as previously existing product.
IRDAI should look into this type of practice as well.