Health Insurance premium hike – Star Health and Allied Insurance has decided to increase the premium rates of 30 percent of its policies by 10 to 15 percent following the new rules of insurance regulator IRDAI. This step… Read more
Star Health Insurance, one of the largest health insurance providers in the country, has said that it will increase the premium rates of 30 percent of its policies by 10-15 percent. The company has said that the increased hospital expenses during Kovid have not yet come down and after the insurance regulator IREDA reduced the waiting period for existing diseases, now the company has no choice but to increase the premium rates.
It is worth noting that the Insurance Regulatory and Development Authority of India (IRDAI) had made some regulatory amendments recently. These also included reducing the waiting period for existing diseases. Insurance companies are busy following these amendments. Its effect is now visible on the premium of your policy. It was believed that IREDA’s decision to reduce the waiting period from 4 years to 3 years would increase the health insurance premium. Now this apprehension has been proved right.
When will the increased premium be implemented
Start Health MD and CEO, Anand Roy, said during a recent analyst call, “We have already planned to increase the prices of some products. The price of one policy has already been increased and two more products will be launched in the next one month. He also said that the regulatory changes related to reducing the moratorium period and reducing the waiting period for existing diseases from four to three years will also have a long-term impact on pricing.
30 percent of policies will be affected
The company’s COO Amitabh Jain said that the company is planning to increase the prices of more than 30 percent of the policies. The average price increase will be 10-15 percent. This price increase will increase the company’s total premium collection by about 4%. The proposed increase comes after a sharp increase in the rates of Family Health Optima Plan recently.
Share fell 9 percent in one year
Star Health Insurance’s share has fallen 9 percent in the last one year. This share has fallen by about 3 percent in the last one month. In the last trading session, Star Health share closed at Rs 573.60, falling by about one percent.
