Follow these methods to avoid increasing health insurance premium, will save money

According to IRDA, insurance companies have been allowed to change the base premium of the original approved premium rates by up to 5 percent.

According to IRDA, insurance companies have been allowed to change the base premium of the original approved premium rates by up to 5 percent.

Due to the new standards of IRDA, insurance premiums of many health insurance holders have increased. This is definitely a loss for the customers but they can reduce the premium knowing the terms and conditions of the policy carefully.

  • News18No
  • Last Updated:February 21, 2021 12:17 PM IS

New Delhi. The new premium of many health insurance holders has increased due to the new standards of IRDA. However, the Insurance Regulatory and Development Authority of India (IRDAI) has clarified that the change in premium due to the change in norms does not exceed 5 per cent. But in some cases this increase is more than 10 to 20 percent.
According to IRDA, insurance companies were allowed to change the base premium of the original approved premium rates by up to 5 percent. This will allow the guidelines of standardization of exclusions to be followed. This has also been done so that the business remains profitable for the companies and they can stay in the market. This is definitely a loss for the customers but they can reduce the premium knowing the terms and conditions of the policy carefully. Let’s know how it is possible …
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Understand from this example how premium increasedLook at the example of 47-year-old Ram Manohara Reddy. Reddy has been keeping the policy of a private general insurance company for the last 17 years. This is a family floater policy in which his 74 year old father and 65 year old mother are also covered. In December 2019, the company ended their policy and shifted the family to a new product. With this, Reddy’s premium increased from Rs 21,762 to Rs 66,667. This increase was more than 200 percent. The insurance company justified this increase and told them that in the new policy, they are getting more benefits like getting rid of the restrictions of room rent. After October 2020, when IRDA’s Standardization Guidelines for existing policies came, they received another advance notice informing them about another increase in premium. Annoyed Reddy says that this time the company has increased the premium by 64 percent to 1.09 lakh rupees. The company has attributed the sharp increase in the cost of medical treatment to this strong increase in premium.
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Policyholders have limited options

The increase in premiums has come as a major setback for long-standing policy-paying policy holders. This is also because it is not easy to shift to another product keeping the waiting period credit for pre-existing diseases. Since, senior citizens are suffering from various diseases at this age, other insurance companies do not prefer to associate them with reasonable premiums.
Prepare Health Fund

Mahavir Chopra, the founder of the organ, says that these changes should take place at Ecosystem level. Senior citizens have limited options. In such a situation, creating an adequate health fund can be an option. Through this, if you have enough money and you can withdraw the expenses of your treatment over a long period, then you can think about ending your policy. Harsh Vardhan Roongta, financial planner at Roongta Securities, says that you should remember that the sum assured of your health insurance gets the same every year, even if you have taken the claim. This does not happen with the funds you create. Once you spend money on treatment, you will have to save separately to meet the shortfall in the fund. However, your prepared fund can be very useful in compensating for any deductions. Deductions are deductions that the insurance company does not pay while paying your hospitalization bill. You have to pay this money. This fund proves effective even if you are in the old age and you do not have any kind of insurance cover.
Port options on other insurance companies’ products

Amit Chhabra, Business Head (Health), PolicyBazaar.com, says that if your premium exceeds 10% of your total insurance, then you should think about the option of porting to other insurance companies or products. According to Chhabra, if the increase in premium seems unnecessary then you can consider the options of porting. You can consider other cheaper policies in the market, including policies for senior citizens. However, it should be noted that there may be many restrictions in them, which may include up to 30 percent co-payment and other limitations. In such a situation, it is a mixed game. Policies can be affordable, but you should also consider restrictions that can take your expenses out of the budget.



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