Health Insurance Premium To Increase By 5-25% As Revamped Plans In The Offing

After reports that term insurance plan will get costlier in few days from now, there is expected a premium hike of 5-25% on health insurance plans. The quantum of premium hike though will depend on the insurance company as well as product features.
The premium price revision on the higher side is likely to be due to the changes announced in all health plans last year.

"In October 2019, the Insurance Regulatory and Development Authority of India (IRDAI) issued a list of guidelines for health insurance companies with the proposition to make the health insurance products more customer-centric," Amit Chhabra, Head, Health Insurance - PolicyBazaar was quoted as saying in a report.

There is a mandate to comply with all the IRDAI-issued guidelines and health insurance products need to be in line with them with effect from October 2020.

"Insurers are using this time to revamp their products by adding new features and standardising products as per IRDAI guidelines... and launch them within two-three months with a higher price," Chhabra added in the report.

"All health conditions and illnesses acquired after the issuance of policy will be covered under the policy. Some of the important and major diseases that will be added to the list include Alzheimer, Parkinson, AIDS/HIV and morbid obesity. Age-related ailments including cataract surgery and knee-cap replacements would also be covered," Chhabra explained.

Other New Changes To Be Incorporated In Health Insurance Plan Include:

1. As per the policy terms and conditions, all of the exclusions in a health insurance plan will be standardized fully.

2. Pre-existing disease: There is a new definition for it as per which any ailment diagnosed by the physician 2 years before the policy issuance date shall be considered pre-existing disease.

Also, for those conditions whose symptoms become apparent within 3 months of policy issuance date, the health cover will take it as pre-existing.

3. Factory labourers with exposure to hazardous chemicals at workplace will also be covered for any of skin or respiratory ailment.

4. Also, mental illness which was until now not part of most health insurance covers will also be included in revamped health policies.

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