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Insurers may have to include information relating to hike in future premium in the event of claims in their health insurance policy document.
This move is intended to remove any ambiguity about premiums going up (loading) following claims in the previous year. Currently, not all health insurance policies clearly illustrate this loading structure.
The clarity on loading in premiums in the event of claims is one of the important recommendations in the draft health insurance regulations proposed by the insurance regulator.
The health insurance regulations proposed by Insurance Regulatory and Development Authority are measures aimed at standardisation so as to reduce disputes and enable customers to make better choices.
“IRDA has made it clear that insurers need to price their health insurance policies carefully and must clearly illustrate the hike in premium in the event of claims during their product filing with the IRDA and in their product brochure as well,” said Suresh Sugathan, Head - Health Insurance, Bajaj Allianz General Insurance.
Will bring ‘transparency’
“Defining the loading in premium will help in bringing transparency and clarity for policyholders,” said Sanjay Datta, Chief - Underwriting and Claims, ICICI Lombard General Insurance.
“Excessive loading on individual clients is absolutely unfair as it defeats the very purpose of insurance, which is risk transfer. Insurers should price their policies appropriately and clearly state their loading structure, otherwise policyholders will lose their trust in health insurance as a concept,” said a senior IRDA official.
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