Health Insurance Policies Premiums May Increase up to 25%, Says Report

The premiums on health insurance policies could possibly see a price rise soon after the government announced a revision of all health products last year. According to a PolicyBazaar report, prices can increase up to 25 per cent depending on the isurance company and the features of the product.

Amit Chhabra, Head, Health Insurance - PolicyBazaar reportedly said that in October last year, the Insurance Regulatory and Development Authority of India (IRDAI) issued a set of guidelines for health insurance companies with its proposition to make health insurance products more "customer-centric".

IRDAI made it mandatory for all insurance companies to follow the guidelines and implement the same in health insurance products with effect from October 2020.

"Insurers are using this time to revamp their products by adding new features and standardising products as per IRDAI guidelines... and launch them within two-three months with a higher price," Chhabra said.

According to IRDAI's new guidelines, all exclusions in a health insurance cover will be completely standardised in accordance with the policy terms and conditions. Any disease or ailment that is diagnosed by a physician 48 months prior to the issuance of the health cover will be classified as pre-existing diseases.

Besides, any condition whose symptoms have resulted within three months of the policy issuance will also be classified under pre-existing diseases.

"Some of the important and major diseases that will be added to the list includes Alzheimer, Parkinson, AIDS/HIV and morbid obesity. Age-related ailments including cataract surgery and knee-cap replacements would also be covered," he added.

Alongside, factory workers and those employed where harmful chemicals are used that can impact health over a long-term period, cannot be refused respiratory or skin ailments arising as a result of workplace conditions. These conditions will also be included in the revamped health insurance policies.

Mental illnesses and several other health issues will also be included in all regular health insurance products.