In response to rising medical cost inflation, other insurance companies are also likely to raise health premiums.
According to General Insurance Council data, New India accounts for about 18.8% of the industry’s health portfolio. The company’s health portfolio is worth about 53% or Rs 5,649.86 crore as of June 2024. Athira Vallier, Mumbai
New India Assurance, India’s largest general insurer, has increased premiums for certain health insurance products by 10 percent, effective from November 11, 2024, according to a notice to sales agents.
According to a communication seen by Business Standard, the general insurer has revised its premiums in line with recent changes introduced by the Insurance Regulatory and Development Authority of India (Irdai) in the health insurance sector.
Click here to connect with us on WhatsApp
“The adjustment is primarily due to additional risks owing to Irdai notifications which have expanded the scope of cover for the benefit of policyholders, resulting in an increase in expected claims and necessitating a premium hike,” said a person aware of the development.
The Irdai master circular introduced several changes, including reducing the waiting period for pre-existing conditions from 48 months to 36 months and the moratorium period from eight years to five years.
According to data from the General Insurance Council, New India accounts for about 18.8% of the industry’s healthcare portfolio. The company’s healthcare portfolio accounts for about 53% as of June 2024, and is worth Rs 5,649.86 crore.
In addition, rising medical cost inflation is likely to have other insurance companies raise health insurance premiums as well.
“Other health insurers have also increased premiums recently. This trend is driven by factors such as medical inflation, which can be two to three times higher than normal inflation rates, and the need to reprice premiums to ensure the sustainability of insurance products,” the insurance distributor said.
An email to New India seeking comment went unanswered till the time of going to press.
Meta Keywords: New India Assurance, Health premium hike, Irdai circular, Insurance Regulatory and Development Authority of India, Pre-existing condition waiting period, Medical inflation, General Insurance sector, Health insurance products, Premium hike, General Insurance Council.