Srinagar, Dec, 15: From next year, private hospitals are preparing to increase the treatment and package charges by up to 10 per cent, which will also have an impact on your health insurance premium. The rise in hospital charges will have more impact on the group insurance premium that is renewed every year and insurance companies will hike the premium as soon as the agreement with the hospitals is renewed. However, this will not affect the premium of the individual health policy for the time being.
IRDAI’s approval is necessary for increasing the premium of individual health policy, but under the guise of a hike in coronavirus claims, companies are also demanding to increase the premium in individual health policy. Insurance companies have received claims worth Rs 25,000 crore related to COVID-19. Some companies have increased the premium and some are in the process of doing it.
The demand for term insurance plans has increased during the pandemic. In such a situation, companies will have to increase strictness for the underwriting of term products giving pure protection and they may have to increase rates due to an increase in reinsurance prices. Along with income proof, companies can also ask for bank statements now.
Additionally, the conditions for complete medical examination may also apply for acceptance of the proposal.
Notably, term plans can also be expensive in the coming times.