Health insurance premiums likely to have increased by 15-18%
While staying fit is imperative, buying a sound health insurance policy is equally important in today's unpredictable times. However, you must know about the recent premium rates hike before selecting one
Health insurance premiums have likely been increased by approximately 15-18 percent, sources told CNBC-TV18. While insurer ICICI Lombard has likely raised the premiums by 10-15 percent, HDFC Ergo has raised the same by 25 percent. Care Health Insurance, Niva Bupa, Aditya Birla and Reliance General have likely raised premiums by 8-20 percent, sources said.
Besides, Star Health Insurance has raised the premiums for its 'Family Health Optima Plan' by 25 percent. Star Health Optima Plan is said to be a super saver plan, which provides coverage for the entire family members including spouse, and dependent kids between 16 days and 25 years of age. People from 18 years to 65 years of age, who live in India, can buy this policy. Notably, this plan contributes 45 percent to Star Health’s total premium.
On the other hand, New India has not made any significant hikes in its premiums.
It's vital to understand that health insurance accounts for nearly 35 percent of general insurance industry premiums.
Health insurance premiums increase due to various factors, especially inflation in the healthcare sector. According to a report by Indian financial services company Motilal Oswal Financial Services Limited, medical inflation in India has continued to rise. The report noted that room rents have increased 3-4 percent over the past one year.
Apart from this, claim frequency also plays a vital role here. The claim frequency rate is the anticipated percentage of insured that will make claims and the number of claims they will make during a certain period of time. This helps in calculating the estimated average cost of claims, which, in turn are used to establish premium rates.
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