Steep Health Insurance Premium Hikes Strain Indian Policyholders
Indian health insurance premiums are experiencing significant increases for the first time in over five years due to rising medical expenses and increased claim payouts. This trend affects individual policyholders the most, leading to financial strain on middle-income families, especially seniors, as they navigate affordability challenges.
- Country:
- India
New Delhi [India], August 11: Indian health insurance customers are facing a substantial rise in premiums, marking the steepest hike in over five years. According to industry reports, premium adjustments are necessitated by rising medical costs and increased claims from the COVID-19 pandemic, affecting millions who rely on these policies.
Data from the National Health Authority indicates medical inflation in India averaged 14% in 2022-23, compelling insurers to revise rates. The Insurance Regulatory and Development Authority of India (IRDAI) is scrutinizing these revisions to ensure they are justified, with major insurers proposing hikes between 15% to 35%.
This premium surge heavily impacts individual policyholders purchasing standalone plans. For a standard Rs. 5 lakh health cover, premiums have risen by Rs. 2,000 to Rs. 5,000 annually, pressing families to consider their insurance choices. Regulatory bodies like IRDAI are working to protect consumers by promoting transparent pricing policies and encouraging standard product offerings.
(With inputs from agencies.)
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