You may not face an abrupt increase in your annual health insurance premiums as the insurance regulator has barred insurers from modifying existing benefits or adding new benefits to existing health insurance plans.
New features can be offered by insurers as an add-on covers or optional covers with a standalone premium rate to ensure an informed choice to the policyholders.
The regulator said in its circular that the modifications in health insurance products led to an increase in premiums.
Tapan Singhel, MD & CEO of Bajaj Allianz General insurance said, “IRDAI has been working towards simplifying insurance offerings and bringing in transparency in order to encourage more people to opt for insurance. The recent modified guidelines on product filing in health insurance business are a step in that direction.”
Under the additional norms on modification of health products (including PA and Travel), IRDAI has clarified that insurers can choose to add new benefits/upgrade existing benefits as an add-on cover with a standalone premium rate for it. This will help the customer make an informed choice and provide them with an opportunity to enhance the coverage by opting for add-on covers as per their needs.
The regulator has also said that the appointed actuary should review the financial viability of every health insurance product at the end of every financial year in accordance with the provisions of Regulation 6 of IRDAI (Health Insurance) Regulations, 2016.
“The report of such review should be submitted to their Board through PMC along with the analysis of favorable or unfavorable experience of each product as well as recommended corrective action, to ensure sustainability of the product and to protect the interests of policyholders of the underlying product,” the report added.
