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.

New India pays penalty for not renewing the health insurance policy

The Hindu ,has carried the following news item.

The Madras High Court has imposed a fine of Rs.10, 000 on New India Assurance Company for refusing to renew insurance policies of a septuagenarian couple because their son had shifted the policies of other, relatively young, family members and his employees to a private insurer. Dismissing a writ appeal filed by the company before the Madurai Bench, a Division Bench, comprising Justice A. Kulasekaran and Justice P. Murgesen, said such arbitrary denial would defeat the objective of medical claim insurance policies. On the appellant’s contention that nobody would take the “risk” of insuring aged persons in the wake of stiff competition between public sector and private insurance companies, the Judges said: “It is immaterial whether a government company is having monopoly or not, but arbitrariness should not appear in their actions and decisions.” Concurring with S. Srinivasa Raghavan, counsel for the insured, the Bench said the reason cited for not renewing the policy was invalid and contrary to basic principles of insurance law.


We in www. healthinsuranceindia.org feel that New India ,the largest insurance company of our country should look at renewal of such policies with a liberal view and should get the goodwill of the masses.They release ads in print media and spend crores of Rupees but do not realize that one such judgement against them and being covered in a reputed paper The Hindu brings down the brand equity of New India.