Health premium sees up to 200% jump
BENGALURU: If your health policy is coming up for renewal after the lockdown, yo u might be in for an unpleasant surprise. Policyholders are seeing their renewal premiums go up by 5-200%.
Most insurance companies have raised the premium on health policies after the insurance regulator ordered them to widen the scope of cover and standardise conditions for exclusions. While the policies are offering wider coverage, the flip side is that for some they are becoming unaffordable. Senior citizen Jamshed Sukhadwalla saw his premium rise 221% to Rs 50,076 from Rs 15,600 when he went for renewal in October.
“A sad state of affairs. Policyholders pay premiums over a lifetime. And during their sunset years, when they need coverage the most — particularly amid the Covid pandemic, where the elderly are the most vulnerable — insurers hike rates. Also, most senior citizens depend on the interest from their bank savings, FDs. With banks lowering interest rates, where will they find fresh income to pay such steep premiums,” asks lawyer Ganesh Prasad. He had to pay a Rs 47,800 premium for a health coverage for his family of four, and take a separate policy for his ageing mother.