Friday, June 21, 2013

30% Increase in Health Insurance Premium

30% Increase in Health Insurance Premium 

It was anticipated for quite sometime that Health insurance Premium will go up as inflation has been affecting the costs of Insurance companies.

In next few months (second half of 2013) let us be prepared for increase in premium of the order of 30% in following companies:

New India Assurance                 August 2013
National Insurance                     October 2013
Oriental Insurance                     October 2013
United India                               June 2013

According to the Mr. N.S.R.Chandraprasad Chairman , National Insurance Company Ltd  – “ This increase is coming after 6 years as last time it was done was in 2007 “

We appreciate the increase in premium so that Health Insurance Portfolio should not be a loss making portfolio. In fact no portfolio should be a loss making portfolio.

One thing which we do not understand – Why do Insurance Companies do aggressive pricing when it comes to quote for Group Health Insurance? Corrective steps are needed to control this practice so that Group Health Insurance Portfolio should also be a profit making portfolio. Claims at 125% of the premium are not acceptable.

Recently we came across a case where claims during 2012-13 were Rs.13.5 lakhs but another company picked up the business by quoting premium of  Rs.9.80 lakhs. We feel individuals / families are being penalized for  this unprofitable Group Business.

It is time strict steps are taken to correct this.

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