IRDAI directs health insurers not to hike premium for senior citizens by over 10 pc

As health insurance companies have imposed significant premium hikes across various age groups — with some insurers increasing premiums by as much as 200 percent — the Insurance Regulatory and Development Authority of India (IRDAI) has issued a directive limiting premium rate revisions for senior citizens to no more than 10 percent annually.

In a recent notification, the industry regulator highlighted the steep increases in premiums for health insurance products targeted at individuals aged 60 and above.

The IRDAI emphasized that senior citizens are a vulnerable group with limited income sources, making them particularly affected by steep premium hikes.

“Insurers will have to consult the IRDAI if the premium is to be increased by more than 10 per cent,” it further directed. As per the notification, insurers will also have to the consult IRDAI before withdrawal of individual health insurance products.

The notification also directed insurers to take steps for empanelment of hospitals and negotiate packages on lines of the Pradhan Mantri Jan Arogya Yojana.

Under the scheme, hospitalisation charges are negotiated centrally for package rates and are standardised across hospitals.

The IRDAI circular is an effort to balance the interests of both insurers and policyholders.

There has also been a long-standing demand for GST reduction on life and health insurance premiums. It is believed that if GST is reduced on insurance premiums, it will reduce the tax burden on both insurers and policyholders.

The Group of Ministers (GoM) has prepared a detailed report on GST decisions regarding various insurances, and exemption on the premium paid for the policies will be reviewed in the next meeting of the GST Council.

(With IANS inputs)