NEW DELHI: In a bid to protect senior citizens—the most vulnerable age group with limited income sources—from steep hikes in health insurance premiums, the Insurance Regulatory and Development Authority of India (IRDAI) on Thursday capped the annual increase on such premiums at 10%.
In its order, the regulator said insurance firms must consult it before proposing any hike above 10%, adding that IRDAI must be also be informed in case of withdrawal of individual health insurance products offered to senior citizens.
IRDAI’s move comes in the wake of widespread complaints of arbitrary increase in premiums as well as rejection of claims by senior citizens.
The regulator took note of the fact that health insurance premium is dependent on claims outgo, which depends on the amount charged by hospitals for treatments. It noted that unlike the Pradhan Mantri Jan Arogya Yojana (PMJAY), there are no centralised negotiations of charges with hospitals. It instructed insurers to take steps for common empanelment of hospitals and negotiate package rates in line with the PMJAY.