New Delhi:
Health insurance for senior citizens will now be more economical. The Insurance Regulatory and Development Authority of India (IRDAI) has directed the insurance companies to not increase the premium of health insurance for people aged 60 or older than 10% annually.
If in any case, the premium has to be increased by more than 10%, then for this, insurance companies will have to get permission from IRDAI.
Ban on arbitrary increase in insurance premium
IRDAI took this decision because in recent years some insurance companies suddenly increased the health insurance premiums of senior citizens. Due to this, people of old age were facing a lot of problems in insurance or renewal. Now under this new rule, companies will not be able to increase more than 10% in premiums without proper reason and permission.
Permission will be taken before withdrawing insurance product
IRDAI has also made it clear that any insurance company will be mandatory to take approval from the regulator before closing a health insurance product. This has been done so that the policy holders do not suddenly have to be deprived of any scheme and keep the insurance cover with them.
Instructions to decide the list of hospitals and package
IRDAI has also instructed insurance companies to take steps to list hospitals. Apart from this, insurance companies will also have to talk to decide health plans on the lines of Pradhan Mantri Jan Arogya Yojana (PMJAY). This will provide the facility of uniform and transparent treatment to the insured.
Impact of new rules
This new decision will provide relief to senior citizens and they will be able to continue their health policy without much financial burden. Also, insurance companies will now have to consult the regulator before increasing the premium and withdraw the policy, which will protect the interests of the customers.